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Saturday, February 9, 2013

Canara Bank Q3 net drops 19% as provisioning for bad loans rises

Canara Bank’s net profit has decreased 18.85 per cent to Rs 710.51 crore for the third quarter of the current fiscal mainly because of higher provisioning for bad loans.

Announcing the results, the bank’s Chairman and Managing Director R. K. Dubey said in a statement that the total income rose 9.5 per cent to Rs 9,390 crore on a year-on-year basis, which includes Rs 5,958 crore income from loans and advances.

The state-owned bank saw its interest income rise 9.37 per cent to Rs 8,544.48 crore. Non-interest income also went up, by 11 per cent to Rs 846 crore.

Net interest income for the quarter stood at Rs 1,988 crore and net interest margin sustained at 2.36 per cent as of December 31, 2012. Cash recovery amounted to Rs 998 crore in the quarter.

Provisioning for bad loans, at Rs 625.90 crore, was 29 per cent higher than in the same period last year.

CASA (current account savings account) deposits improved to Rs 8,1162 crore with the domestic CASA ratio working out to 26 per cent.

The bank’s net NPA (non-performing assets) ratio stood at 2.35 per cent (Rs 5,134 crore) compared with 1.49 per cent (Rs 3,265 crore) in the same period of the previous year. “Continuing stress levels at the industry is reflected in the rise in NPAs,” the bank statement said.

The total expenditure increased 12.3 per cent to Rs 7,874 crore while operating expenses was up 17.5 per cent to Rs 1,317 crore.

Segmental revenues

Segment-wise, revenues from treasury operations rose 37.16 per cent to Rs 2,815.78 crore, while that of retail banking operations was nearly flat at Rs 2,312.87 crore. Revenues from wholesale banking operations was Rs 4,173.70 crore, almost the same compared with the previous period.

On a sequential basis, the return on average assets improved to 0.82 per cent from 0.71 per cent. Agricultural credit increased 27 per cent to Rs 3,5365 crore covering 38 lakh farmers.

The statement said the bank’s financial inclusion plan has already covered all the 1,621 allotted villages under the more than 2,000 population category in 24 States.

It is also participating in the pilot project for direct benefit transfer of government benefits in 43 districts across the country under the Aadhaar Payment Bridge.

Canara bank has added 112 branches and 616 ATMs on a year-on-year basis.

Source: thehindubusinessline


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