Canara Bank has reported a 15.4 per cent decline in net profit during the second quarter ended September 30, 2011, mainly on account of higher provisions to cover the possibility of bad loans.
The bank made a net profit of Rs. 852 crore during the quarter against Rs.1,008 crore in the same period in the previous year. This was despite an increase in total income from Rs. 6,077 crore to Rs.8,443 crore.
The bank made an operating profit of Rs. 1,605 crore, an increase of 13 per cent. Net interest income amounted to Rs. 1,962 crore.
Net interest margin was lower at 2.42 per cent against 2.64 per cent, according to S. Raman, Chairman and Managing Director.
The bank's global business crossed the Rs. 5.30-lakh crore mark, a growth of 25 per cent. While net advances grew 24 per cent, domestic deposits increased by 26 per cent. Low-cost deposits termed CASA (current and savings account deposits) accounted for 26.7 per cent of all domestic deposits.
