Canara Bank on Monday reported a 15.44% decline in net profit for the quarter ending September 30, compared to the corresponding period last year, on higher provisioning for non-performing assets (NPAs).
The bank posted net profit of R852.22 crore during the quarter against R1,007.88 crore in the corresponding period last year. Total income for the quarter grew 38.9% to R8,443 crore driven by a 41.8% growth in income from loans and advances, the bank said in a release.
Operating profit stood at R1,605 crore, a growth of 26% over the June quarter, the bank said, adding that return on assets was 1.01%.
The bank said that its gross NPA ratio increased to 1.73% (R3,793 crore) from 1.49% (R2,636 crore) in the year-ago period due to the full migration to system-based NPA recognition irrespective of size or category. The Net NPA ratio stood at 1.43% (R3,117 crore) in September.
The bank’s net interest margin was 2.64%, an increase of 22 basis points over the June quarter, while net interest income for the quarter was R1,962 crore. The capital adequacy ratio stood at 12.78%.
Canara Bank said its savings deposits rose 17.9% year-on-year to R64,043 crore. It added over 14 lakh savings bank clientele during the quarter, helped by 160 new branches opened during the period. The bank said its global business rose 25% y-o-y to R5,30,515 crore. Canara Bank’s stock gained 1.82% to close at R469.25 at at the BSE.