India’s third-largest nationalised bank, Canara Bank, on Tuesday, posted its second-quarter earnings report card in which it reported its net profit three times higher as the concerns for bad loans receded and a slight improvement in its asset quality was seen along with higher other income coming in.
Canara Bank’s net profit stood at ₹ 1,333 crore for the second quarter of the current fiscal whereas it was ₹ 444 crore during the same quarter last year.
Bank’s net interest income or the difference between interest earned on loans and interest expended on deposits came down to ₹ 6,274 crore in the reporting quarter from ₹ 6,305 crore a prior-year period.
Canara Bank’s asset quality improved a bit in the Sept quarter as its gross non-performing assets, as a percentage of total advances, stood at 8.42 per cent against 8.50 per cent in the previous quarter. Its Gross NPAs in absolute terms settled at ₹ 57,853 crore.
During the quarter the Bengaluru based bank’s provisions for bad loans lowered to ₹ 2,678 crore compared with ₹ 3,533 crore in the year-ago.
The profit in the second quarter was supported by the 38 per cent jump in other income which totalled at ₹ 4,268 crore.
“The Bank achieved its target in the priority sector at 46.27 per cent and agricultural credit at 20.49 per cent,” Canara Bank said in a press release.
Despite the bank posting improved profit figures, the stock on NSE ended the intraday lower by 4.26%. It opened its intraday at Rs 203.00 and closed at Rs 193.35, down Rs 8.60, from Rs 201.95.