1. Canara Bank net flat at Rs 627 cr on higher provisioning drag

Canara Bank net flat at Rs 627 cr on higher provisioning drag

Canara Bank’s net profit remained flat for the September quarter at Rs 626.84 crore.

By: | Bengaluru | Published: November 7, 2014 2:56 AM

Canara Bank’s net profit remained flat for the September quarter at Rs 626.84 crore, a nominal decline from Rs 625.94 crore in the same period last year, as provisioning went up. Sequentially, net profit declined 22.4%.

The lender made a total provision of R999 crore for the quarter, which was 25% higher than the year-ago period. Of this, the provision for NPAs was R912 crore. The bank said its provision coverage ratio increased to 58.68% in the September quarter from 57.77% last year.

Net interest income grew 8.06% to R2,368 crore during the quarter from R2,191 crore a year ago. Sequentially, it showed a decline of 2.53% from R2,429 crore. Operating profit for the quarter was up 14.08% y-o-y at R1,626 crore.

“Gross NPAs stood at R9,164 crore, with the gross NPA ratio at 2.92% compared to 2.64% last year, despite continuing stressed scenario at the industry level,” Canara Bank said in a release. Net NPAs were at R7170 crore during the quarter with a net NPA ratio of 2.31% compared to net

NPAs of R6459 crore in the year-ago period when the net NPA ratio was at 2.30%.

Canara Bank has said that it aims to bring the gross NPA ratio to around 2% and net NPA ratio to 1.5% by the end of the fiscal.

Domestic net interest margin (NIM) improved to 2.36% from 2.33% last year and global NIM stood at 2.24% compared to 2.22% last year.

Total income grew 14.27% to R11,915 crore in the September quarter from R10,427 crore a year ago, while it grew 1.59% from R11,728 crore in the April-June stretch.

“Cash recovery during the second quarter amounted to a record R1,194 crore compared to R1,035 crore for the same quarter a year ago,” the bank said, adding that cash recovery during the first half of FY15 aggregated to R3,213 crore.

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