Canara Bank wednesday reports its net profit in the June quarter rose 17% year-on-year because of lower provision and improved asset quality.
The bank posted a net profit of ₹329.07 crore for the three months ended 30 June compared with ₹281.49 crore in the year-ago period. Profit was higher than ₹284 crore estimated by analysts.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 11.70 % in the June quarter compared with 11.90 % in the March quarter and 13% in the year-ago period.
Provisions during the quarter fell 26.46% to₹1,899.13 crore as against ₹2,582.30 crore in the year-ago quarter. In the Jan-Mar quarter, the bank had set aside ₹5,523.50 crore in provisions.
Net interest income, or the difference between interest earned on loans and that paid on deposits, decreased 16.54% to₹3,240.61 crore from ₹3,882.9 crore in the corresponding period of last year.
Other income, which includes core fee income, rose 1.58% to ₹1,861.87 crore in the three months from ₹1832.91 crore a year ago.
Post provision, the net NPA ratio was at 8.2% against 8.31% in the Jan-Mar quarter and 9.35% in the year-ago quarter.
Public Sector lender Syndicate Bank on today reported narrowing down of its net loss to Rs 980.46 crore in the June quarter because of a fall in provisioning for bad assets.
The bank had posted a net loss of Rs 1,281.77 crore in the same April-June quarter of the previous fiscal ended March 2019. Total income during the June quarter of 2019-20 rose to Rs 6,080.69 crore from Rs 56,37.51 crore in the year-ago period, Syndicate Bank said in a regulatory filing.
The bank’s asset quality witnessed a slight improvement with the gross non-performing assets (NPAs) falling to 11.76 per cent of the gross advances by the end of June 2019 quarter, from 12.59 per cent as on June 2018. Net NPAs or bad loan ratio fell to 5.06 per cent, as against 6.64 per cent a year ago period.
The overall provisioning for bad loans and contingencies for the quarter fell to Rs 1,969.09 crore from Rs 2,326.82 crore a year ago. The bank’s provision coverage ratio as on June 30, 2019, stood at 69.02 per cent. The lender said that it has restructured 5,065 MSME accounts and treated them as standard assets amounting to Rs 172.81 crore up to June end 2019.
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