Canara Bank profit down 16% on higher provisions

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Updated: November 05, 2015 5:26 AM

Canara Bank on Wednesday reported a 16% decline in net profit to Rs 529 crore for the quarter ended September 2015, against Rs 627 crore in the year-ago period.

Public sector lender Canara Bank on Wednesday reported a 16% decline in net profit to R529 crore for the quarter ended September 2015, against R627 crore in the year-ago period. Higher provisioning towards NPAs and interest rate fluctuations impacted the profitability.

Provisioning went up by a whopping 49% to R1,212 crore during the September quarter against R814 crore in the year-ago quarter. Of this, R979 crore were towards NPAs. “During the quarter under review, the bank witnessed fresh slippage of R2,200 crore, while the recovery was of R1,210 crore”, Rakesh Sharma, MD & CEO, told FE. Total income witnessed a modest growth of 4.7% to R12,478 crore from R11,915 crore in the same quarter last year. The operating profit for the quarter went up 19.5% to R1,944 crore. In the year ago quarter, it stood at R1,626 crore.

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