Canara Bank Q1 profit down 41%

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Mumbai | Published: August 6, 2015 12:23:28 AM

Canara Bank saw a credit growth of 6.96% y-o-y with its net advances at Rs 3.2 lakh crore

Canara Bank on Wednesday reported a net profit of R479 crore in the June quarter, down 40.6% from the same period last year. The fall was a result of higher provisions at R1,359.7 crore.

The bank’s net interest income–difference between interest earned and interest expended–stood at R2,516 crore in Q1 FY16, up 3.6% year-on-year (y-o-y). Its net interest margin–the key indicator of profitability–stood at 2.35%, only one basis point lower sequentially. The provision for NPAs during the quarter was R1,143 crore compared to R1,125 crore in Q1 FY15.

Other income increased by 8.4% y-o-y to R1,113 crore and its operating profit jumped 11.6% to R2,004 crore in Q1. The Bangalore-based lender reported a 4.5% y-o-y growth in total income at R12,253 crore in Q1 FY16.

As far as asset quality of the bank is concerned, the gross NPAs as a percentage to total advance went up to 3.98% from 3.89% in the preceding quarter. Bank’s net NPAs also rose 9 basis points (bps) sequentially to 2.74%. Its cash recoveries during Q1 aggregated to R1,056 crore and outstanding restructured portfolio stood at R28,704 crore, constituting 8.73% of the gross advances.

While Canara Bank witnessed a credit growth of 6.96% y-o-y with its net advances at R3.2 lakh crore, its deposits reached R4.7 lakh crore, with a y-o-y growth of 10%.

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