Canara Bank Q1 net profit falls 41% to Rs 478 cr as provisions mount

By: | Published: August 5, 2015 3:40 PM

Canara Bank today reported 40.65 per cent decline in net profit at Rs 478.84 crore in the first quarter ended June as it parked a higher share towards contingencies for bad loans.

State-run lender Canara Bank today reported 40.65 per cent decline in net profit at Rs 478.84 crore in the first quarter ended June as it parked a higher share towards contingencies for bad loans.

The Bengaluru-headquartered bank’s net profit in similar quarter of the previous fiscal stood at Rs 806.86 crore, it said in a filing to the BSE.

The bank’s share for provisions and contingencies rose by over 72 per cent during the first quarter of 2015-16 at Rs 1,359.73 crore as against Rs 788.14 crore in the same period a year ago.

Total income during the quarter under review rose to Rs 12,252.64 crore, from Rs 11,728.01 crore a year ago, registering a growth of 4.5 per cent, the filing added.

Bank’s asset quality fell further as gross non-performing assets (NPAs) or bad loans stood at 3.98 per cent of gross advances in the first quarter of 2015-16. It was 2.67 per cent of gross advances in the same period of 2014-15.

Net NPAs too slipped at 2.74 per cent of net advances as against 2.03 per cent a year ago.

Also, the bank made a provision of Rs 151.47 crore as arrear for wage revision.

Besides, the bank’s liability on unhedged foreign currency exposure was at Rs 85.34 crore during the quarter.

Further in May, Canara Bank alloted 4 crore equity shares at a premium of Rs 370.08 to LIC on preferential basis for a total consideration of Rs 1,520.32 crore.

Canara Bank shares were trading 1.52 per cent down at Rs 304.70 apiece during afternoon trade on the BSE.

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