Canara Bank profit plummets to ₹85 crore in third quarter

BENGALURU, FEB 12:  

Canara Bank reported a massive drop in net profit to ₹85 crore in the third quarter of this fiscal mainly due to higher provisioning. For the same period last year, the bank’s net profit was ₹655.97 crore.

Operating profit before provisions and contingencies declined 15.78 per cent to ₹1,552.44 crore (₹1,797 crore in the same period last year). Rakesh Sharma, Managing Director and CEO, attributed the lower profits to higher provisioning of ₹1,428.85 crore.

Total income in the quarter fell 1.44 per cent to ₹12,050.63 crore (₹12,227.86 crore). EPS stood at ₹1.56 as against ₹14.22 recorded last year.

Revenues from treasury operations came in at ₹3,167.90 crore (₹3,174.90 crore), retail banking ₹3,613 crore (₹3,173.45 crore), and wholesale banking ₹5,249.20 crore (₹5,713.79 crore).

Asset quality

Asset quality weakened during the quarter and the bank’s gross non-performing assets (NPA) rose to 19,813 crore (₹10,574 crore) and net NPAs to ₹12,940 crore (₹7,556 crore).

Net interest income (NII) decreased to ₹2,227 crore (₹2,380 crore), and domestic net interest margin (NIM) dropped to 2.29 per cent (2.36 per cent).

Deposits, advances

CASA deposits fell to ₹1.05-lakh crore (₹1.18 lakh crore last year). The bank’s total deposits stood at ₹4.90 lakh crore as against ₹4.62 lakh crore in the same period last year.

Advances (net) came in at ₹3.31 lakh crore (₹3.12 lakh crore in the year-ago quarter). Capital adequacy ratio according to Basel III norms improved to 11.54 per cent.