Canara Bank Q1 profit slips 52% to Rs 229 crore

However, shares of bank closed at 253.70 per unit up 5.31% on the BSE

State-run lender Canara Bank on Monday reported 52.1% decline in net profit at Rs 228.9 crore in the first quarter ended June as it parked a higher share towards contingencies for bad loans.

The Bengaluru-headquartered bank's net profit in same quarter of the previous financial year stood at Rs 478.84 crore, Canara Bank said in a regulatory filing to BSE.

The bank's provisions and contingencies rose to Rs 1,492.92 crore in the April-June quarter from Rs 1,359.73 crore in the same period a year ago.

Total income during the quarter under review declined to Rs 11,786.3 crore, from Rs 12,252.64 crore a year ago.

Bank's asset quality deteriorated further as gross non-performing assets (NPAs) or bad loans stood at 9.71% of gross advances in the first quarter of 2016-17 against 3.98% in the same period of FY2015-16.

Net NPAs too slipped to 6.69% of net advances as against 2.74% a year ago.

However, shares of Canara Bank closed at 253.70 per unit up 5.31% on the BSE.