Canara Bank’s Q4 loss widens to Rs 3,259 crore on fraud provisioning

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Published: June 25, 2020 12:01 AM

Net interest income (NII) — the difference between interest earned and interest expended — stood at Rs 3,318 crore, down 5.2% y-o-y.

Canara Bank’s operating profit fell 34% y-o-y to Rs 2,097 crore.Canara Bank’s operating profit fell 34% y-o-y to Rs 2,097 crore.

Public sector lender Canara Bank on Wednesday reported a Rs 3,259-crore loss in the March quarter of FY20, against a loss of Rs 551.5 crore a year ago, after the bank was amalgamated with Syndicate Bank. The bank set aside additional provisions against fraud.

“The Bank has availed option for deferment of provision in respect of frauds reported for Rs 2,349.59 Crores requiring additional provision of Rs 1,989.26 Crores in terms of option available as per RBI circular dated 18.04.2016. Accordingly, an amount of Rs 497.31 crores has been charged to profit and loss account and an amount of Rs 1,491.95 crores have been charged to Reserves & deferred for adjustment in subsequent quarters,” it said in the notes to accounts.

The bank reported a total income of Rs 14,222 crore, up 1.6% year-on-year (y-o-y). Net interest income (NII) — the difference between interest earned and interest expended — stood at Rs 3,318 crore, down 5.2% y-o-y. Provisions fell 2.7% y-o-y to Rs 5,375 crore. Canara Bank’s operating profit fell 34% y-o-y to Rs 2,097 crore.

The bank showed an improvement in terms of asset quality. Gross non-performing assets (NPAs) as a percentage of total advances fell 15 basis points (bps) on a sequential basis to 8.21% and the net NPA ratio declined 83 bps to 4.22%. In absolute terms, GNPAs stood at Rs 37,250 crore, while net NPAs stood at Rs 18,288 crore in Q4FY20.

Gross domestic advances of the bank stood at Rs 4.27 lakh crore as on March 31, 2020 with growth of 1.8% y-o-y. Domestic deposits of the bank stood at Rs 6.02 lakh crore as on 31 March 2020, up 6.3% y-o-y. The domestic current account savings account (CASA) share improved y-o-y by 173 bps to 32.59%.

Canara Bank’s shares on the BSE closed at Rs 109.45 on Tuesday, down 3.95% from their previous close. The results were declared after the close of trade.

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