Bengaluru-based public sector lender Canara Bank on Monday reported a marginal 0.34 per cent rise in net profit at Rs 612.96 crore for the fourth quarter ended March 31, 2015, on account of rise in NPAs (non-performing assets).
The bank had net profit of Rs 610.83 crore in the corresponding quarter last year.
The bank’s total income went up seven per cent to Rs 12,429.21 crore compared with Rs 11,609.72 crore a year ago, Canara Bank said in a filing to the BSE. The operating profit (before provisions and contingencies) declined by 7.9 per cent to Rs 1,732.53 crore compared with Rs 1,882.10 crore.
Net Interest Income (NII), or the difference between interest earned on loans and the interest paid on deposits, stood at Rs 2,486.14 crore in the fiscal fourth quarter, a decline of 1.93 per cent from Rs 2,535.19 crore.
The public sector lender’s other income rose 23.9 per cent to Rs 1,325.81 crore compared with Rs 1,070.04 crore.
Reflecting continued stress in the asset quality at the industry level, gross non-performing assets (NPAs) ratio increased to 3.89 per cent compared with 2.49 per cent, and net NPAs increased to 2.65 per cent from 1.98 per cent.
However, for the full fiscal 2014-15, the bank’s net profit rose by 10.8 per cent to Rs 2,702.63 crore as compared with Rs 2,438.19 crore in the previous fiscal.
“We have adequate headroom available to raise capital to support business growth momentum. The bank is in need of raising around Rs 3,000 crore to achieve a credit growth rate of 15 per cent during the current financial year. We, however, have not taken a decision as to when to raise the capital. We are open to all instruments,” Canara Bank Executive Director P S Rawat, who also has the additional charge of MD and CEO, said.
The bank declared a final dividend of 105 per cent (Rs 10.50 per share).
DH News Service
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