State-run lender Canara Bank today reported a massive 60.3 per cent jump in the net profit at Rs 656 crore in the quarter to December, helped by higher treasury income, cash recovery and lower expenses.
The Bangalore-headquartered bank had posted a net profit of Rs 409.35 crore for the December quarter of 2013-14 fiscal.
"Gains in treasury income, higher cash recovery, control over our expenses were the factors which contributed towards the good set of numbers during the quarter. Also, we were able to contain fresh slippages," Managing Director and Chief Executive V S Krishna Kumar told reporters here today.
Bank's treasury income rose to Rs 301 crore in the quarter as against Rs 77 crore in the same period last year. Bank's total cash recovery stood at Rs 4,427 crore as against Rs 1,214 crore in the year-ago period.
Net interest income of the bank during the quarter under review increased by 6.9 per cent to Rs 2,380 crore.
Its domestic net interest margin was at 2.36 per cent as against 2.35 per cent a year ago. Globally, NIM improved to 2.24 per cent from 2.21 per cent.
Gross non-performing assets rose to 3.35 per cent from 2.79 per cent, while net NPAs stood marginally moved up to 2.42 per cent from 2.39 per cent.
The bank saw Rs 2,292 crore of loans becoming NPAs during the quarter as against Rs 2,100 crore in the year ago period. It made a provision of Rs 952 crore for bad loans in the period as against Rs 543 crore made last year.
The Karnataka-based bank restructured Rs 1,095 crore of loans as against Rs 3,402 crore in the same period last year. The bank sees a restructuring pipeline of Rs 1,200 crore in the fourth quarter. It also saw Rs 613 crore of restructured accounts slipping into NPA in the December quarter.
Total fee income rose by 38.2 per cent to Rs 1,176 crore from Rs 851 crore in the year-ago period. Advances grew 8.5 percent to Rs 3.12 trillion and deposits rose 13.1 per cent to Rs 4.62 trillion.
The bank, which is in the process of raising Rs 1,500 crore through additional tier I capital, has a headroom to raise Rs 3,000 crore through qualified institutional placement or additional tier I capital during the fourth quarter, Kumar said.
