Canara Bank Q1 profit falls 52.1% to Rs229 crore on higher provisions

The bank’s provisions and contingencies rose to Rs.1,492.92 crore in the June quarter from Rs.1,359.73 crore in the year ago period


Bank’s asset quality deteriorated further as gross non-performing assets stood at 9.71% of gross advances in the first quarter of FY17 against 3.98% in the same period of FY16. Photo: Mint
Bank’s asset quality deteriorated further as gross non-performing assets stood at 9.71% of gross advances in the first quarter of FY17 against 3.98% in the same period of FY16. Photo: Mint

New Delhi: State-run lender Canara Bank on Monday reported 52.1% decline in net profit at Rs.228.9 crore in the first quarter ended 30 June as it parked a higher share towards contingencies for bad loans.

The Bengaluru-headquartered bank’s net profit in same quarter of the previous fiscal year stood at Rs.478.84 crore, Canara Bank said in a regulatory filing to BSE.

The bank’s provisions and contingencies rose to Rs.1,492.92 crore in the April-June quarter from Rs.1,359.73 crore in the same period a year ago.

Total income during the quarter under review declined to Rs.11,786.3 crore, from Rs.12,252.64 crore a year ago.

Bank’s asset quality deteriorated further as gross non-performing assets (NPAs) or bad loans stood at 9.71% of gross advances in the first quarter of FY17 against 3.98% in the same period of FY16. Net NPAs too slipped to 6.69% of net advances as against 2.74% a year ago.

However, shares of Canara Bank closed at Rs.253.70 apiece up 5.31% on BSE. The company reported results after market hours.

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