 "Canara Bank profit declines 32.5%")
Public sector lender Canara Bank on Wednesday said that its second quarter profit fell 32.5 per cent to Rs 356.9 crore, compared with Rs 528.8 crore during the corresponding period last year, as it doubled provisions for bad loans.
The bank doubled provisions or non-performing assets (NPAs) to 9.8 per cent in the quarter, against nearly 4.3 per cent a year ago, as it struggled to recover loans it gave to customers. The net NPA ratio almost tripled to 6.7 per cent from 2.9 per cent from a year ago.
Total income dipped 2.3 per cent to Rs 12,187 crore, compared with Rs 12,478 crore in the second quarter of FY16. The non-interest income increased 47.2 per cent year-on-year (y-o-y) to Rs 1,782 crore. The cash recovery during the quarter at Rs 1,040 crore, taking the cumulative figure to Rs 1,958 crore for the first half of the financial year.
In a statement issued, the bank said for March 2017, the goal is to focus on current account and saving account (Casa) and retail deposits, retail credit, fee income, containing NPA, recovery and upgradation, and improving operational financial ratios, such as, net interest margin (NIM), return-on-assets (RoA), return-on-equity (RoE) and cost-to-income.
The bank reported growth in retail assets, on a y-o-y basis, with agriculture registering a growth of 14.4 per cent, MSME saw a growth of 8.3 per cent, retail lending rose 22.6 per cent, direct housing jumped 18.6 per cent, Vehicle loans rose 17.4 per cent, education increased nearly 16 per cent and other personal loans by 17 per cent.
The bank now has a total of 5,868 branches and 10,026 ATM’s. It has about four million mobile banking and 2.6 million net banking users. E-transactions ratio increased to 59.3 per cent, against 53.7 per cent a year ago, the statement said.
The bank doubled provisions or non-performing assets (NPAs) to 9.8 per cent in the quarter, against nearly 4.3 per cent a year ago, as it struggled to recover loans it gave to customers. The net NPA ratio almost tripled to 6.7 per cent from 2.9 per cent from a year ago.
Total income dipped 2.3 per cent to Rs 12,187 crore, compared with Rs 12,478 crore in the second quarter of FY16. The non-interest income increased 47.2 per cent year-on-year (y-o-y) to Rs 1,782 crore. The cash recovery during the quarter at Rs 1,040 crore, taking the cumulative figure to Rs 1,958 crore for the first half of the financial year.
In a statement issued, the bank said for March 2017, the goal is to focus on current account and saving account (Casa) and retail deposits, retail credit, fee income, containing NPA, recovery and upgradation, and improving operational financial ratios, such as, net interest margin (NIM), return-on-assets (RoA), return-on-equity (RoE) and cost-to-income.
The bank reported growth in retail assets, on a y-o-y basis, with agriculture registering a growth of 14.4 per cent, MSME saw a growth of 8.3 per cent, retail lending rose 22.6 per cent, direct housing jumped 18.6 per cent, Vehicle loans rose 17.4 per cent, education increased nearly 16 per cent and other personal loans by 17 per cent.
The bank now has a total of 5,868 branches and 10,026 ATM’s. It has about four million mobile banking and 2.6 million net banking users. E-transactions ratio increased to 59.3 per cent, against 53.7 per cent a year ago, the statement said.