Canara Bank reports Q1 profit at ₹406 crore, beats estimates1 min read . Updated: 05 Aug 2020, 08:19 PM IST
The bank had reported a consolidated net loss of ₹651 crore in the year-ago period
Public sector lender Canara Bank on Wednesday reported a net profit to ₹406.24 crore for the three months ending June on the back of a rise in net interest income (NII) and other income.
In its investor presentation, the bank also provided the comparable numbers consolidating those of Canara Bank and Syndicate Bank, when they were separate entities. These two banks merged on 1 April and the June quarter numbers reflect the financials of the amalgamated entity.
The bank had reported a consolidated net loss of ₹651 crore in the year-ago period. A Bloomberg poll of two analysts had estimated a loss of ₹356.20 crore in the June quarter of FY21.
The bank’s net interest income – difference between interest earned and interested expended – grew 21.11% y-o-y to ₹6,096 crore for the quarter ended 30 June over ₹5,033 crore for the same quarter last year.
Other income, which includes core fee income, rose 10.56% year-on-year to ₹2,650.10 crore during the quarter under review. Provisions fell marginally during the June quarter to ₹3,879 crore against ₹3,901 crore in the corresponding quarter last year.
Canara Bank’s asset quality marginally deteriorated in the June quarter with gross bad loan ratio or the percentage of bad loans to total advances fell 144 bps y-o-y to 8.84%. Its net non-performing asset (NPA) ratio was down 192 bps to 3.95% in Q1 FY21.
The bank’s total advances were at ₹6.5 trillion in Q1 of FY21, an increase of 3.25% over the same period last year. Total deposits stood at ₹9.09 trillion, an increase of 4.56% over 30 June last year.
Shares of Canara Bank lost 1.24% to close at ₹103.15 on BSE, while the benchmark index, Sensex fell 0.07% to close at 37,663.33 points.