New Delhi: Public sector bank Canara Bank on Friday reported a net loss of Rs4,859.77 crore for Q4 FY18 due to increased provisions for non-performing assets (NPAs).
Canara Bank had clocked a net profit of Rs214.18 crore in the corresponding Q4 FY17.
For 2017-18, Canara Bank suffered a net loss of Rs4,222.24 crore compared with a net profit of Rs1,121.92 crore in the previous fiscal.
The bank raised its NPA provisions to Rs8,762.57 crore during the January-March quarter, up by nearly 200% from Rs2,924.08 crore in the same period of previous fiscal, as bad loans ballooned, according to a regulatory filing.
Total income of the bank in Q4 fell to Rs11,555.11 crore from Rs12,889.20 crore. In 2017-18, total income stood at Rs48,194.94 crore against Rs48,942.04 crore in preceding year, the bank said.
Asset-wise, there was fall in quality as gross NPAs rose to 11.84% of gross advances by the end of March 2018 from 9.63% by end-March 2017. In absolute value, the gross NPAs were at Rs47,468.47 crore from Rs34,202.04 crore. Net NPA ratio stood at 7.48% (Rs28,542.40 crore) from 6.33% (Rs21,648.98 crore).
The NPA provisions for the full year rose to Rs14,882.70 crore from Rs7,437.77 crore in 2016-17.
Additionally, on the bad loan divergence for 2016-17, Canara Bank said there was a gap of Rs3,248.50 crore in gross NPAs with the bank reporting it to be Rs34,202.04 crore and the Reserve Bank assessing it at Rs37,450.54 crore. Net NPA divergence was of Rs1,847.28 crore.
The public sector bank reported it to be Rs21,648.98 crore and RBI assessed it at Rs 23,496.26 crore. Thus, there was a resultant divergence in provisioning to the tune of Rs1,401.22 crore in 2016-17. However, taking the bad loan divergence into account for 2016-17, the bank adjusted for a net loss of Rs279.30 crore against its originally reported net profit of Rs1,121.92 crore.
On Thursday, shares of Canara Bank fell 0.92% to Rs246.35 on BSE while the benchmark index Sensex rose 0.82% to 35,535.79 points.