Canara Bank’s quarterly profit rose 60% as growth in net interest and fee income bolstered its top line. The lender posted a net profit of R656 crore for the quarter ended December 31. Operating profit rose 13% compared with the corresponding period in fiscal 2014 to R1,797 crore.
Net interest income for the quarter rose 6.9% to R2,380 crore, while earnings from fees jumped 38% to R1,176 crore. Sequentially, net interest income rose 0.5%. Total deposits increased to R4.62 lakh crore, which is a rise of 13% over the corresponding period in fiscal 2014 while net advances rose 8.5% y-o-y to R3.12 lakh crore.
The bank’s gross non-performing assets (NPA) stood at R10,574 crore with a ratio of 3.35%, while net NPA stood at R7,556 crore with a net NPA ratio of 2.42%. The lender’s outstanding restructured portfolio constituted 8.04% of the gross advances at R25,400 crore.
Domestic net interest margin (NIM) rose to 2.36% in this quarter, while the global NIM stood at 2.24%. The bank made a total provision of R1,141 crore in the quarter, while provision for NPAs stood at R952 crore.
The Bangalore-based bank said it opened 1.96 lakh accounts under the Pradhan Mantri Jan Dhan Yojana in the third quarter.