Bengaluru-based public sector lender – Canara Bank – on Tuesday said its net profit tripled in the second quarter of the current fiscal due to lower provisioning for bad loans, marginal improvement in its asset quality and higher other income. Canara Bank’s net profit for the quarter ended September 2021 stood at Rs 1,333 crore as against Rs 444 crore in the same quarter last year. Its net interest income or the difference between interest earned on loans and interest spent on deposits narrowed slightly to Rs 6,274 crore in the September quarter from Rs 6,305 crore during the same quarter last year.
Canara Bank’s asset quality improved marginally in the September quarter as its gross non-performing assets, as a percentage of total advances, stood at 8.42 per cent versus 8.50 per cent in the previous quarter. Its gross NPAs together stood at Rs 57,853 crore.
Canara Bank’s provision for bad loans during the quarter declined to Rs 2,678 crore as compared to Rs 3,533 crore in the previous year.
Profit in the second quarter was boosted by a 38 per cent jump in other income to Rs 4,268 crore.
“The bank achieved the target of 46.27 per cent in priority sector and 20.49 per cent in agriculture credit,” Canara Bank said in a press release.
As on 30.09.2021, the Bank had 9,800 branches and 10,988 Automated Teller Machines (ATMs).
As of 12:41 pm, Canara Bank shares were trading 4 per cent lower at Rs 194, nearly 1 per cent lower than the Bank Nifty index. The stock was also a top loser in the Nifty Bank index.