Canara Bank clocks net profit of Rs 214 crore

Public sector lender Canara Bank has clocked a net profit of Rs 214 crore for the quarter ended March 31, 2017, against loss of Rs 3,905 crore in the corresponding period, a year ago.

However, compared with the third quarter of fiscal year 2016-17, both net profit as well as gross profit saw a decline. The net profit in the third quarter stood at Rs 322 crore. On the yearly basis, net profit of the bank, aggregated to Rs 1,122 crore in FY 2016-17, compared with a net loss of Rs 2,813 crore in FY 2015-16.

The net interest margin (NIM) — Domestic, for the bank stood at 2.39%, while NIM (Global) stood at 2.23%. The total income of the bank went up to Rs 12,889 crore in the quarter under consideration, against Rs 12,116 crore in the corresponding quarter last year.

Overseas business of the bank has reached 8.09% of its total business, while the total business of eight overseas branches stood at Rs 67,716 crore.

Retail Loans — agriculture, MSMEs, housing and other retail schemes — constituted 60.61% of the bank’s total credit portfolio, increased from 57.88%, a year ago. Bank's gross bad loans or non-performing assets (NPAs) during the quarter under review rose marginally to 9.63%, against 9.4% in the same year-ago period.

The gross NPAs, in terms of amount, were at Rs 34,202 crore, up from Rs 31,637.83 crore in the year-ago period. “The banking industry per se is going through a turnaround period with steps and measures from the regulator and the government. We are well cushioned against all odds and alterations and motivated to work objectively towards the goals in the year ahead. Our ultimate goal is to serve our customers better with digital technologies and take the organisation to the next level,” Chairman and CEO of the Bank Rakesh Sharma said.

DH News Service