Canara Bank net plunges 33 per cent in Q2

Bengaluru: State-run Canara Bank on Wednesday reported standalone net profit of Rs 357 crore for the second quarter (July-September) of this fiscal (2016-17, registering 33 per cent decline from Rs 529 crore in like period year ago.

Sequentially, however, net profit has increased 56 per cent from Rs 229 crore posted in first quarter (April-June) of this fiscal.

Total income for the quarter under review (Q2) also declined 2.3 per cent year-on-year (YoY) to Rs 12,187 crore from Rs 12,478 crore in same period year ago.

“Interest earned for the quarter declined 7.7 per cent YoY to Rs 10,405 crore from Rs 11,268 crore year ago,” said the city-based bank in a regulatory filing to the stock exchanges earlier in the day.

Operating profit, however, grew 10 per cent YoY to Rs 2,141 crore from Rs 1,944 crore year ago.

Owing to a whopping 60 per cent increase in provisioning for non-performing assets (NPAs) to Rs 1,558 crore from Rs 979 crore year ago, provisions have increased 31 per cent to Rs 1,586 crore from Rs 1,212A crore year ago.

The bank’s gross NPAs amount shot up 138 per cent YoY to Rs. 33,315 crore from Rs 14,021 crore year ago, while net NPAs amount zoomed 133 per cent to Rs 21,887 crore from Rs 9,383 crore year ago.

As a result, gross NPA ratio jumped to 9.8 per cent from 4.27 per cent year ago, while net NPA ratio increased to 6.69 per cent from 2.9 per cent year ago.

The bank’s global business of Rs.8.11-lakh crore includes Rs 4.84-lakh crore in deposits and Rs 3.27-lakh crore in net advances for Q2.