Canara Bank posts fourfold increase in Q3 net profit
Mumbai: Canara Bank Ltd on Friday reported a fourfold increase in net profit in the December quarter on increase in other income.
Net profit for the quarter increased to Rs321.88 crore compared with Rs84.97 crore a year ago. According to estimates of 10 Bloomberg analysts, the bank was expected to post a net profit of Rs345.40 crore.
Net interest income (NII), or the core income a bank earns by giving loans, rose 8.40% to Rs2,413.80 crore in the December quarter from Rs2,226.60 crore last year.
Other income increased 53.32% to Rs1,791.70 crore in the third quarter from Rs1,168.56 crore in the same period last year.
Gross non-performing assets (NPAs) at Canara Bank rose 3.07% to Rs34,338.65 crore at the end of the December quarter from Rs33,315.40 crore in the September quarter. As a percentage of total loans, gross NPAs were 9.97% at the end of the December quarter compared with 9.81% in the previous quarter and 5.84%a year ago.
Provisions and contingencies fell 6.37% to Rs1,484.57 crore in the third quarter from Rs1,585.74 crore a quarter ago. Net NPAs rose to 6.72% in the December quarter compared with 6.69% in the previous quarter and 3.90% in the same quarter last year.
Canara Bank’s shares ended the day down 5.04% at Rs272.50 per share on the BSE, while the benchmark Sensex index closed 1% lower at 27,034.50 points.