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Canara Bank Q1 profit surges 17% to Rs 329 crore on lower provisions, asset quality improves

Canara Bank Q1 result: Provisions and contingencies fell by 26 per cent to Rs 1,899.1 crore as compared to Rs 2,582.30 crore made in the year-ago quarter

twitter-logo BusinessToday.In   New Delhi     Last Updated: July 24, 2019  | 18:39 IST
Canara Bank Q1 profit surges 17% to Rs 329 crore on lower provisions, asset quality improves
Canara Bank's net interest income declined by 16.53 per cent to Rs 3,240.61 crore in April-June quarter of FY20

State-owned Canara Bank has reported 17.08 per cent year-on-year rise in its standalone net profit at Rs 329.07 for the quarter ended June 30, 2019, helped by lower provisions and improvement in asset quality.

"The Bengaluru-headquartered public lender had posted a net profit of Rs 281.49 crore in the same quarter last year," Canara Bank said in a filing to the Bombay Stock Exchange.

Canara Bank's net interest income (NII), or the core income a bank earns by giving loans, declined by 16.53 per cent to Rs 3,240.61 crore in April-June quarter of FY20 as against Rs 3,882.9 crore in the same quarter last fiscal.

The other income (non-interest income), including core fee income, increased 1.58 per cent at Rs 1,861.87 crore against Rs 1,832.91 crore in the same period last year.

The provisions and contingencies of Canara Bank fell by 26 per cent to Rs 1,899.1 crore as compared to Rs 2,582.30 crore made in the year-ago quarter. The bank's provisions in the March quarter stood at Rs 5,523.50 crore.

Canara Bank's asset quality showed improvement during June quarter, as gross non-performing assets (NPAs) ratio - bad loans as a percentage of gross advances - reduced to 8.77 per cent, versus 11.05 per cent in the year-ago quarter. Net NPA declined to 5.35 per cent during June quarter as compared to 6.91 per cent in the corresponding quarter last year. The bank's absolute gross NPA stood at Rs 39,399.02 crore in Q1FY20 against Rs 44,659.56 crore in Q1FY19.

During the quarter under review, the bank's operating profit dipped 16.80 per cent to Rs 2,440 crore versus Rs 2,933 crore in the year ago period.

Shares of Canara Bank closed trade at Rs 248.65 on the BSE, down 2.97 per cent as compared to the previous close.

Edited by Chitranjan Kumar

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