The Bengaluru-based public sector lender – Canara Bank – on Tuesday said that its net profit in second quarter of the current financial year tripled on account of lower provisioning for bad loans, slight improvement in its asset quality and higher other income. Canara Bank’s net profit in quarter ended September 2021 came in at Rs 1,333 crore as against Rs 444 crore during the same quarter last year. Its net interest income or the difference between interest earned on loans and interest expended on deposits declined slightly to Rs 6,274 crore in September quarter from Rs 6,305 crore during the same quarter last year.
Canara Bank’s asset quality showed a slight improvement in September quarter as its gross non-performing assets, as a percentage of total advances, came in at 8.42 per cent versus 8.50 per cent in the previous quarter. Its Gross NPAs in absolute terms stood at Rs 57,853 crore.
During the quarter Canara Bank’s provisions for bad loans declined to Rs 2,678 crore compared with Rs 3,533 crore in the previous year.
The profit in second quarter got a boost from 38 per cent jump in other income which came in at Rs 4,268 crore.
“The Bank achieved its target in priority sector at 46.27 per cent and agricultural credit at 20.49 per cent,” Canara Bank said in a press release.
As on 30.09.2021, the Bank had 9,800 branches and 10,988 automatic teller machines (ATMs)
As of 12:41 pm, Canara Bank shares traded 4 per cent lower at Rs 194, underperforming the Bank Nifty index which was down nearly 1 per cent. The stock was top loser in the Nifty Bank index as well.