Canara Bank Q3 net dips 21% at Rs 875.56 crore

Canara Bank Q3 net dips 21% at Rs 875.56 crore

Canara Bank, on Friday, reported a 20.81 per cent decline in its net profit at Rs 875.56 crore for the third quarter ended December 31, 2011, following a rise in its bad assets.

Canara Bank CMD S Raman announcing the bank’s Q3 results in Bangalore, on Friday. KPN

The bank had posted a net profit of Rs 1,105.73 crore in the same reporting quarter of the previous fiscal.

Likewise, for nine month period, the bank’s net profit dipped 22 per cent to Rs 2,453.63 crore from Rs 3,126.98 crore in the same period a year ago.

Briefing reporters, Canara Bank Chairman & Managing Director S Raman, attributed the fall in profit to total provisions made for the quarter at Rs 701 crore including Rs 142 crore for non-performing asssets, Rs 185 croreon depreciation on investments and Rs 157 crore for restructed assets.

He, however, observed that there was a sequential increase in net profit at Rs 726 crore for first quarter of fiscal 2012 to Rs 852 crore for second quarter of fiscal 2012 to Rs 876 crore for the third quarter despite tough environment.

The bank’s net interest income also took a fall of 8.85 per cent at Rs 1,919 crore (Rs 2,089 crore previous).  The bank’s gross NPAs increased to 1.81 per cent (Rs 3,999 crore) at the end of third quarter as compared to 1.44 per cent (Rs 2,753 crore) in December, 2010.

At the same time, provisions other than tax and contingencies rose to Rs 501.18 crore compared to Rs 157.28 crore in the same quarter in the previous fiscal. Further, Raman, said the bank, however, effected a record cash recovery of Rs 2,346 crore for the nine month period compared to the entire fiscal 2011 cash recovery of Rs 2,032 crore. Cash recovery during the reporting quarter was Rs 788 crore, he added.

The bank’s global net interest margin at 2.52 per cent during the reporting quarter was lower than 3.21 per cent of the same period quarter of last fiscal while its domestic NIM was down at 2.64 per cent as against 3.61 per cent of same period last fiscal. Likewise, for thenine-month periods too there was slight fall in the bank’s NIM at 2.48 per cent (3.15 per cent previous) and for the quarter 2.60 (3.26 per cent previous). Raman observed that this was due to the best rate the bank provided for its deposits.

However, the bank’s total income rose to Rs 8,591.15 crore during the quarter from Rs 6,444.55 crore in the same period last year a rise of 33.3 per cent driving by a 37.4 per cent growth in income from loans/advances of Rs 5,946 crore.  Canara Bank has reported total income of Rs 24,741.47 crore in the first three quarters, compared to Rs 18,416.46 crore in the same period last financial year up by 34.3 per cent.