Canara Bank net declines 41% to Rs. 478 cr

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 30, 2015 as it parked a higher share towards contingencies for bad loans.

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

The bank’s share for provisions and contingencies rose over 72 per cent during the first quarter of 2015-16 to Rs. 1,359.73 crore from 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.

The 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 arrears 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 had allotted 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.


Source : Thehindubusinessline