Canara Bank net up 10 percent in Q1

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SME Times News Bureau | 20 Jul, 2017
State-run Canara Bank on Wednesday reported Rs 252 crore net profit for first quarter of 2017-18, registering 10 percent annual growth over Rs 229 crore in the same period last year.

"Net interest income for the quarter under review, grew 18 percent year-on-year to Rs 2,713 crore and non-interest income 33 percent to Rs.2,109 crore," said the city-based bank in a statement here.

The bank's global business, however, grew 5.4 percent to Rs 8.3 lakh crore, with Rs.4.9 lakh in deposits, up 4.4 percent from last year and Rs 3.4 lakh crore in net advances, up 6.7 percent.

"Net Interest Margin for the domestic business was 2.6 percent and 2.3 percent for overseas operations," said the statement.

With Rs 1,331 crore cash recovery during the quarter, gross non-performing assets (NPA) ratio stood at 10.6 percent and net NPA at 7.1 percent.

"We have resolved that the current fiscal would be a 'year of recovery and growth'. Efforts are being made to improve the bank's financial health, as reflected in the first quarter results," said Managing Director Rakesh Sharma in the statement.

The NPA ratios have, however, shown an increase due to time lags in resolution.

"Our focus on NPA management will continue and we expect the net NPA level to decline to less than 6 percent by the year-end," he added.