A fall in total provisions and recovery from bad loans helped state-owned Canara Bank more than double its net profit to Rs 1502 crore for the December quarter even as provision toward fresh bad debt rose marginally.
The bank reported a net profit at Rs 696 crore in the year ago period.
Net interest margin, a key profitability parameter, rose to 2.83 per cent for the December quarter from 2.72 per cent in the year ago period. The bank's net interest income rose 14 per cent year-on-year at Rs 6,946 crore.
Managing director LV Prabhakar sounded confident on bettering asset quality going forward as stressed loans account for merely 1.76 per cent of total portfolio. Stressed loans had accounted for 3.63 per cent of the total portfolio in the year-ago period.
Its asset quality deteriorated when compared to the December 2020 quarter but improved sequentially. Gross non-performing assets (GNPA) ratio was at 7.8 per cent, as compared with 7.46 per cent a year back. Gross NPA was 8.42 per cent at the end of September. Net NPA ratio was at 2.86 per cent against 2.64 per cent at the end of December 2020 and 3.21 per cent as on September 20, 2021.
The bank recovered Rs 2,784 crore in the December quarter from bad loans as well as written off accounts, as compared with Rs 2,893 crore in the year back period.
The bank's operating profit rose 10 per cent at Rs 5,803 crore against Rs 5,267 crore over the same period while total provision dipped 47 per cent at Rs 2,245 crore from Rs 4,210 crore helping the sharp rise in net profit. Provisions to cover bad loans were Rs 2,705 crore against Rs 2658 crore in the corresponding quarter in 2020.
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