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Bangalore: Public sector lender Canara Bank’s net profit has dropped sharply by 42.39 percent at Rs 409.35 crore for the third quarter ended December, hit mostly by higher provisioning for bad loans.
The city-headquartered bank had clocked profit after tax at Rs 710.51 crore in the October-December quarter of 2012-13.
Total income of the bank increased to Rs 10,935 crore during the quarter, from Rs 9,390.29 crore in the same period a year ago, Canara Bank Executive Director P S Rawat said Friday.
Income from the loans and advances for the quarter increased to Rs 7,360 crore with year-on-year growth of 23.5 percent and non-interest income for the quarter stood at Rs 851 crore, Rawat said.
“Total expenses for the quarter was Rs 9,344 crore compared to Rs 7,874 crore for third quarter of FY’2013 and the operating expenses for the quarter stood at Rs 1,488 crore compared to Rs 1,317 crore for third quarter of FY 2013.”
The net interest income for the quarter increased to Rs 2,227 crore with 12 percent year-on-year growth, he said.
The bank’s gross NPA stood at Rs 8,074 crore, with a gross NPA ratio of 2.79 percent compared to 2.77 percent as in December 2012, Rawat said.
The banks net NPA stood at Rs 6,870 crore with a net NPA ratio of 2.39 percent compared to 2.35 percent as in December 2012, he said.
Total provision made for the quarter was at Rs 1,182 crore compared to Rs 799 crore for second quarter and Rs 1,106 crore for the first quarter in FY14, he said.
The provision for NPAs during the quarter was Rs 543 crore and provisions made for depreciation on investments was Rs 157 crore, Rawat said.
Gross NPA ration was at 2.79 percent compared to 2.77 percent as in December 2012, despite spike in stressed assets at the industry level, Rawat said.
“Upgradation was of Rs 2,061 crore in nine months of this year compared to Rs 779 crore in the same period last year,” he said.
The bank also registered record cash recovery at Rs 3,135 crore compared to Rs 2,477 crore as in December 2012.
Net Interest Income increased to Rs 6,409 crore with year-on-year growth of 10.7 percent and non-interest income was at Rs 2,863 crore, up by 33.4 percent year-on-year.
Ratio of E-transactions increased to 44 percent compared to 22 percent as in December 2012, he said.
The bank registered total deposits of Rs 4.09 lakh crore, up by 26.2 percent year-on-year and advances at Rs 2.88 lakh crore, up by 31.8 percent year-on-year, he added.
The bank has declared an interim dividend of 65 percent, Rawat said, adding that global advances recorded 31.8 percent growth to reach a level of Rs 28,7,700 crore compared to Rs 218242 crore as the in December 2012.
The bank’s overseas business constituted six percent of the total business and the total business of five overseas branches increased to Rs 39788 crore from Rs 26276 crore a year ago, Rawat said.
He said the advances under agriculture portfolio increased to Rs 45,703 crore with a growth of 29.2 percent year-on- year, achieving 19.88 percent to ANBC (Adjusted Net Bank Credit) as against mandated target of 18 percent. Advances to micro, small, medium enterprises reached Rs 47678 crore with a year-on-year growth of 46.2 percent, he said.
Talking about future goals, Rawat said the bank aims to reach an aggregate business figure of more than Rs 7 lakh crore, with deposit growth of more than 17 percent and advances growth of more than 21 percent.
The bank also aims to take the number of branches to more than 5,500 and ATMs to 10,000 by March 2015, he said.
First Published: Friday, January 31, 2014, 20:04
Canara Bank Q3 net profit drops 42.39% on higher provisioning
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