In the previous quarter ending March 2018, Canara Bank had made a huge loss of Rs 4,860 crore on account of substantially higher provisions to cover bad loans.
Canara Bank Wednesday reported a 12 percent year-on-year (YoY) rise in net profit at Rs 281.49 crore for the first quarter of the new fiscal year ending June 2018. The bank had posted a profit of Rs 252 crore in the year-ago period
The Q1 profit of the Bengaluru-based public sector bank was helped by a healthy growth in net interest income (NII) and a decline in bad loans from the previous quarter.
In the previous quarter ending March 2018, Canara Bank had made a huge loss of Rs 4,860 crore on account of substantially higher provisions to cover bad loans.
During the quarter, NII -- the difference between interest earned on loans and that paid on deposits jumped 43 percent YoY to Rs 3,882.9 crore from Rs 2,713 crore in the June quarter last year.
related news
However, other income or non-interest income fell 13 percent to Rs 1,832.9 crore from Rs 2,108.5 crore in Q1FY18.
Asset quality
Provisions during the quarter inched up 17 percent to Rs 2,582.3 crore (Rs 2,466 crore towards bad loans) from Rs 2,203.7 crore in the corresponding quarter last year.
In January to March period, provisions for the public sector bank had shot up to Rs 9,075 crore.
Gross non-performing assets (NPAs) as a ratio of gross advances improved to 11.05 percent from 11.84 percent in the March quarter ending 2018. A year ago, the gross NPA ratio was lower at 10.56 percent in the June quarter of 2017.
Net NPA ratio also declined to 6.91 percent from 7.48 percent at the end of March 2018 and 7.09 percent as on June 2017.
Loans and Deposits
Total advances edged up by 1.2 percent to Rs 3.86 lakh crore and deposits also grew in the same range by 1.6 percent to Rs 5.33 lakh crore.
Canara Bank shares ended at Rs 257.60 per share, higher by 1.78 percent as against 0.09 percent increase in BSE Sensex.