CanBank Q1 net profit dives 41% at Rs 478.84 cr

CanBank Q1 net profit dives 41% at Rs 478.84 cr

Bengaluru-based public sector lender Canara Bank on Wednesday reported a 40.65 per cent decline in net profit at Rs 478.84 crore for the first quarter ended June 30, 2015. The bank had reported a net profit of Rs 806.86 crore in the corresponding quarter last year.

“The profits are lower during the quarter as the entire amount for staggered provisioning has been taken during this quarter so as to clean up the balance sheet and to ensure that no future liability is there,” Canara Bank executive director PS Rawat said. During the quarter, provisions were up 72.52 per cent to Rs 1,359.73 crore as against Rs 788.14 crore in the comparable quarter.

The bank’s total income went up 4.47 per cent to Rs 12,252.64 crore compared with Rs 11,728.01 crore a year ago. Operating profit for the bank (before provisions and contingencies) was up 11.61 per cent to Rs 2,003.57 crore compared with Rs 1,795 crore.
Net Interest Income (NII), or the difference between the interest earned on loans and the interest paid on deposits, stood at Rs 2,516.5 crore, up 3.59 per cent from Rs 2,429.26 crore a year ago.

The bank’s other income rose 8.38 per cent to Rs 1,112.99 crore compared with Rs 1,026.90 crore. Gross non-performing assets (NPAs) ratio stood at 3.98 per cent higher than 2.67 per cent. Net NPA ratio stood at 2.74 per cent compared with 2.03 per cent. The bank’s shares closed at nearly 2 per cent lower at Rs 303.55 per share on the BSE.

According to Rawat, the bank is not averse to raising funds via a qualified institutional placement (QIP). “The QIP will depend on how the market behaves. This is not an opportune time to go to the market. Depending on the options, I would like to explore the QIP option as well,” Rawat said.

During the quarter, the bank took up one case of close to Rs 400 crore under the 5:25 scheme. The bank, according to Rawat, is also in talks in one account for standard debt restructuring and is hopeful of striking that deal soon.

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