Canara Bank reports profit surge of 75% to Rs 3,535 cr in June quarter
Interest earned by the bank improved to Rs.25,004 crore over Rs.18,177 crore in June 2022
State-owned Bank Canara on Monday reported a 75 per cent rise in net profit at Rs 3,535 crore in the June quarter, buoyed by a decline in bad loans and growth in interest income.
The Bengaluru-based lender made a net profit of Rs. 2,022 crore in the same period last year.
Total income in the first quarter of the current financial year rose to Rs.29,828 crore, from Rs.23,352 crore in the same period last year, Canara Bank said in a regulatory filing.
Interest earned by the bank improved to Rs.25,004 crore from Rs.18,177 crore in June 2022.
The bank’s asset quality showed improvement as total non-performing assets fell to 5.15 percent of total advances at the end of the June quarter, from 6.98 percent a year earlier.
Likewise, net NAPs or bad loans decreased to 1.57 percent compared to 2.48 percent in the period of last year.
As a result, the provision for bad loans fell to Rs.2,418 crore, as against the Rs.2,673 crore provision in the same quarter last year.
The bank’s capital adequacy ratio increased to 16.24 percent, compared to 14.91 percent at the end of June 2022.
In accordance with the proposed bilateral agreement in wage review (due from November 2022), an estimated provision of Rs. 344.69 crore has been made for the quarter ended 30th June 2023.
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First published: July 24, 2023 | 1:45 p.m ist