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Bangalore-based public sector lender Canara Bank on Monday reported a 15.7 per cent decline in net profit to Rs 611 crore for the quarter ended March 31, compared with Rs 725 crore in the corresponding quarter of the previous financial year. Its total income for the quarter increased 22.5 per cent to Rs 11,610 crore, compared with Rs 9,472 crore in the March quarter of 2013.
Despite higher net interest income, the bank’s net profit took a hit due to higher provisioning towards non-performing assets (NPAs) and lower yield on advances during the quarter, said R K Dubey, chairman and managing director.
The net interest income went up 21.3 per cent to Rs 2,535 crore, as against Rs 2,091 crore. The net interest margin stood at 2.27 per cent, compared with 2.40 per cent in the year-ago period. The yield on advances came down 59 basis points to 10.54 per cent. The cost of deposits dipped 30 basis points to 7.42 per cent over that of fourth quarter of the last financial year.
The operating profit for the quarter at Rs 1,882 crore was higher by 10.9 per cent over Rs 1,698 crore in the corresponding quarter of the last financial year.
Total provision made for the quarter stood at Rs 1,271 crore, compared with Rs 972 crore in the fourth quarter last year, an increase of 30.7 per cent. Of this, provisions for NPAs was Rs 802 crore as against Rs 346 crore, an increase of 2.3 times over the same period last year.
The board recommended a dividend of 110 per cent (Rs 11 per share) for the full year, including an interim dividend of 65 per cent declared in January 2014.
The gross NPAs at the end of the quarter stood at Rs 7,570 crore, an increase of 20.9 per cent over the corresponding quarter of the previous financial year. In the year-ago period, the gross NPAs stood at Rs 6,260 crore.
The percentage of net NPAs came down to 1.98 per cent in March 2014 from 2.18 per cent in the year ago quarter. The capital adequacy ratio under Basel-III stood at 10.63 per cent. The return on assets (annualized) declined to 0.54 per cent from 0.77 per cent in March quarter last year.
Global business of the bank grew 20.7 per cent to Rs 7,21,790 crore. The global advances grew 24.3 per cent year-on-year to Rs 3,01,067 crore compared to Rs 2,42,177 crore as of March 2013.
The credit-deposit (CD) ratio improved to 71.56 per cent from 68.05 per cent a year ago. The bank has reduced its bulk deposits to Rs 27,000 crore as on March 31, 2014, from Rs 51,000 crore in the year ago period. The CDs stood at Rs 34,000 crore. Bulk deposits and CDs together stand at below 15 per cent of the total deposits of the bank.
The Casa ratio (domestic) improved to 25.9 per cent from 25.1 per cent last year.
During 2014-15, the Bank is aiming at a business growth of 18-20 per cent to touch a total business level of Rs 8.5 lakh crore with a NIM target of 2.50 per cent.
Canara Bank will open a branch at Johannesberg in South Africa later this month and another overseas branch at New York in June 2014, Dubey said.
Despite higher net interest income, the bank’s net profit took a hit due to higher provisioning towards non-performing assets (NPAs) and lower yield on advances during the quarter, said R K Dubey, chairman and managing director.
The net interest income went up 21.3 per cent to Rs 2,535 crore, as against Rs 2,091 crore. The net interest margin stood at 2.27 per cent, compared with 2.40 per cent in the year-ago period. The yield on advances came down 59 basis points to 10.54 per cent. The cost of deposits dipped 30 basis points to 7.42 per cent over that of fourth quarter of the last financial year.
The operating profit for the quarter at Rs 1,882 crore was higher by 10.9 per cent over Rs 1,698 crore in the corresponding quarter of the last financial year.
Total provision made for the quarter stood at Rs 1,271 crore, compared with Rs 972 crore in the fourth quarter last year, an increase of 30.7 per cent. Of this, provisions for NPAs was Rs 802 crore as against Rs 346 crore, an increase of 2.3 times over the same period last year.
The board recommended a dividend of 110 per cent (Rs 11 per share) for the full year, including an interim dividend of 65 per cent declared in January 2014.
The gross NPAs at the end of the quarter stood at Rs 7,570 crore, an increase of 20.9 per cent over the corresponding quarter of the previous financial year. In the year-ago period, the gross NPAs stood at Rs 6,260 crore.
The percentage of net NPAs came down to 1.98 per cent in March 2014 from 2.18 per cent in the year ago quarter. The capital adequacy ratio under Basel-III stood at 10.63 per cent. The return on assets (annualized) declined to 0.54 per cent from 0.77 per cent in March quarter last year.
Global business of the bank grew 20.7 per cent to Rs 7,21,790 crore. The global advances grew 24.3 per cent year-on-year to Rs 3,01,067 crore compared to Rs 2,42,177 crore as of March 2013.
The credit-deposit (CD) ratio improved to 71.56 per cent from 68.05 per cent a year ago. The bank has reduced its bulk deposits to Rs 27,000 crore as on March 31, 2014, from Rs 51,000 crore in the year ago period. The CDs stood at Rs 34,000 crore. Bulk deposits and CDs together stand at below 15 per cent of the total deposits of the bank.
The Casa ratio (domestic) improved to 25.9 per cent from 25.1 per cent last year.
During 2014-15, the Bank is aiming at a business growth of 18-20 per cent to touch a total business level of Rs 8.5 lakh crore with a NIM target of 2.50 per cent.
Canara Bank will open a branch at Johannesberg in South Africa later this month and another overseas branch at New York in June 2014, Dubey said.
