Canara Bank gained 1.55% to Rs 104.75 after net profit rose 23.5% to Rs 406.24 crore on 47% rise in total income to Rs 20,685.91 crore in Q1 June 2020 over Q1 June 2019.
Profit before tax stood at Rs 459.11 crore in Q1 June 2020, falling 15% from Rs 540.88 crore in Q1 June 2019. The result was announced after market hours yesterday, 5 August 2020.Canara Bank in its notes to accounts said amalgamation with Syndicate Bank has come into effect from 1 April 2020 and thus the results for quarter ended June 30,2020 includes operations of erstwhile Syndicate Bank. Hence, the results for current quarter are not comparable with immediately preceding quarter and corresponding financial quarter of previous year. The amalgamation is accounted under the 'pooling of interest' method as prescribed in AS-14 on Accounting for amalgamation to record amalgamation of Syndicate Bank with Canara Bank.
The bank's net-interest income grew by 21.11% to Rs 6096 crore in Q1 June 2020 from Q1 June 2019.
On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 57,525.52 crore as on 30 June 2020 as against Rs 37,041.15 crore as on 31 March 2020 and Rs 39,399.02 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 8.84% as on 30 June 2020 as against 8.21% as on 31 March 2020 and 8.77% as on 30 June 2019. The ratio of net NPAs to net advances stood at 3.95% as on 30 June 2020 as against 4.22% as on 31 March 2020 and 5.35% as on 30 June 2019.
The bank's provisions and contingencies surged 101% to Rs 3826.34 crore in Q1 June 2020 from Rs 1899.13 crore in Q1 June 2019. With respect to COVID-19 provisioning, during June 2020, Canara Bank made additional provisions of Rs 746.36 crore in Q1 June 2020. Total COVID-19 provision stands at Rs 1038.37 crore in Q1 June 2020. The bank said 1,22,388 accounts or 22.67% of its total accounts have availed moratorium as of Q1 June 2020.
Provision Coverage Ratio (PCR) stood at 78.95% at 30 June 2020. The bank's Capital Adequacy Ratio as on June 2020 improved to 12.77% from 12.31% in June 2019. Out of which Tier-I is 9.29% and Tier-II is 3.48% as at June 2020.
Canara Bank is a state-owned commercial bank with headquarters in Bangalore. The Government of India held 78.55% stake in the bank as of 30 June 2020.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
