Canara Bank net marginally rises to Rs 807 crore

Written by fe Bureau | Bangalore | Updated: Jul 22 2014, 06:09am hrs
Canara Bank on Monday posted a year-on-year increase of 1.87% in net profit for the quarter ended June 30, helped by lower provisions. The bank reported a net profit of R807 crore for the quarter compared to R792 crore in the year-ago period. Sequentially, profit grew 32.08% from R611 crore.

The bank said it is planning to raise R3,000 crore through a qualified institutional placement (QIP) for which it has received approval from the RBI.

We want to raise R3,000 crore to shore up our capital under tier-1. We would approach investors some time in the second quarter after the shareholders' approval at the AGM, CMD RK Dubey told reporters.

The Canara Bank scrip closed at R400.80, down by 2.73%, on the BSE.

The bank's net interest income grew 22% to R2,429 crore compared to R1,991 crore a year ago, though it declined 4.18% sequentially from R2,535 crore. Operating profit declined 5.44% to R1,795 crore from R1,898 crore in the same period last year and 4.62% from R1,882 crore in the January-March stretch.

The bank said its domestic net interest margin (NIM) improved to 2.42% from 2.33% in the year-ago period and from 2.40% on a sequential basis. Canara Bank said it has increased its provision coverage ratio to 60.10% from 58.18% last year. The bank's provision for non-performing assets stood at R1,125 crore for the quarter. However, its total provision was lower than the preceding two quarters at R988 crore.

Canara Bank's net NPAs at the end of the June quarter stood at R6,150 crore compared to R6,209 crore in the year-ago period and R5,965 crore in March. The net NPA ratio was lower at 2.03% compared to 2.48% in the corresponding period last year but higher than the 1.98% reported in the preceding quarter.