Canara Bank Q3 net up 50% at Rs 1,053 cr

Canara Bank Q3 net up 50% at Rs 1,053 cr

Canara Bank Q3 net up 50% at Rs 1,053 cr

Canara Bank Chairman A C Mahajan. DH Photo

The growth in profit can be attributed mainly to a substantial reduction in the cost of deposits from 6.81 per cent in the previous year to 6.25 per cent this year, a dip of 56 basis points (bps). Another factor contributing to the growth in profit is a sharp drop of 52 per cent in provisions and contingencies (other than tax) from Rs 352.57 crore in the previous year to Rs 167.41 crore in the current year.  

Total expenses

Also, total expenses declined by 4.1 per cent to Rs 3,999 crore this year as against 4,168 crore last year. In addition, the bank witnessed a 14 per cent jump in the demand for credit from Rs 1,280 crore last year to Rs 1,470 crore this year.  Announcing the results, Canara Bank Chairman & Managing Director A C Mahajan said “the bank has recorded an impressive growth despite unfavourable circumstances of low credit growth and hardening bond yield. The bank could maintain the spread by increasingly focussing on core business growth and containing cost.”

Total income marginally increased to Rs 5,469 crore in the quarter under review from Rs 5,383 crore in the corresponding period a year ago, registering a 1.6 per cent growth. Net interest income went up from Rs 1,244 crore to Rs 1,478 crore, by 19 per cent from the previous year. The net interest margin was sustained at 2.71 per cent.

Increase in NPA

The bank witnessed a marginal increase in non-performing assets from Rs 1,654 crore to Rs 1,976 crore. Capital adequacy ratio (CAR) increased marginally to 14.44 per cent from 13.41 per cent a year ago.