Canara Bank Q1 net profit declines 52% to Rs 229 cr

Canara Bank Q1 net profit declines 52% to Rs 229 cr

Canara Bank Q1 net profit declines 52% to Rs 229 cr

Public sector lender Canara Bank on Monday reported a 52.18% drop in net profit at Rs 228.95 crore for the first quarter ended June 30, 2016, on account of bad loans.

The bank had reported a net profit of Rs 478.84 crore in the corresponding quarter, last year. The bank’s total income also fell to Rs 11,786.35 crore for the quarter under review from Rs 12,252.64 crore in the year-ago period, Canara Bank said in a regulatory filing to the BSE.

The bank’s provisions and contingencies rose to Rs 1,492.92 crore in the April-June quarter, from Rs 1,359.73 crore in the same period, a year ago.

Operating profit declined by 9.21% to Rs 1,818.87 crore, compared with Rs 2,003.57 crore in the corresponding period. NII (net interest income), or the difference between interest expended on deposits and that earned on loans, fell to Rs 2,307.40 crore for the first quarter, down 8.30% from Rs 2,516.50 crore, a year ago.

The bank’s asset quality deteriorated further as gross non-performing assets (NPAs) or bad loans stood at 9.71% of gross advances in the first quarter of 2016-17, against 3.98% in the same period of FY2015-16. Net NPAs too slipped to 6.69% of net advances, against 2.74%, a year ago.

However, shares of Canara Bank closed at 253.70 per unit up 5.31% on the BSE.

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