Canara Bank reports profit surge of 75% to Rs 3,535 cr in June quarter

State-owned Canara Bank on Monday reported a 75 per cent rise in net profit at Rs 3,535 crore in the June quarter, helped by decline in bad loans and growth in interest income.

The Bengaluru-based lender had posted a net profit of Rs 2,022 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to Rs 29,828 crore, from Rs 23,352 crore in the same period a year ago, Canara Bank said in a regulatory filing.

Interest earned by the bank improved to Rs 25,004 crore over Rs 18,177 crore in June 2022.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 5.15 per cent of gross advances at the end of the June quarter, from 6.98 per cent a year ago.

Similarly, net NPAs or bad loans declined to 1.57 per cent, as against 2.48 per cent in the year-ago period.

As a result, provision for bad loans came down to Rs 2,418 crore, as against Rs 2,673 crore allocated in the same quarter a year ago.

Capital Adequacy Ratio of the bank increased to 16.24 per cent, as compared to 14.91 per cent at the end of June 2022.

Pursuant to proposed bipartite agreement in wage revision (due with effect from November, 2022), an estimated provision of Rs 344.69 crore has been made towards this for the quarter ended June 30, 2023, it said.