Canara Bank Q2 Net profit jumps three times

 

State-owned Canara Bank reported a three-times rise in net profit at Rs 1,333 crore for the September quarter, riding on treasury and non-interest income and higher cash recovery.

The bank’s net profit was Rs 444 crore in the year-ago period.

Its net interest margin (NIM), a key profitability parameter, however, dipped to 2.72% in the quarter under review from 2.82% in the same period last year. Net interest income (NII) was a shade lower at Rs 6,273 crore from Rs 6,305 crore while total income rose a slim 2.6% at Rs 21,331 crore.

Its operating profit grew 22% to Rs 5,604 crore as against Rs 4,597 crore. Treasury income jumped 95% to Rs 1,754 crore while non-interest Income rose 37.5% at Rs 4,268 crore. Provision to cover bad loans fell 24% at Rs 2678 crore with improvement in recovery of loans that were already covered.

Bank chief executive LV Prabhakar expects corporate loans to grow at 7.5% for the full year despite muted demand so far, raising hopes of pick up in industrial activities. He expects retail loans to continue to grow by over 10%.

Canara’s gross advances grew 5.8% year-on-year (YoY) to Rs 6.87 lakh crore while the corporate loan portfolio rose 2.2% to Rs 2.96 lakh crore. The retail lending book rose 10.46% to Rs 1.19 lakh crore.

The lender’s asset quality improved sequentially, with gross non-performing assets (NPA) ratio falling to 8.42% at the end of September from 8.5% three months back. Net NPA stood at 3.21% as against 3.46%.

Prabhakar said the bank with 14.37% capital adequacy is comfortably placed for growth and meeting regulations. The lender has just recently raised Rs 1,500 crore in AT-1 capital while the board has approved raising another 2500 crore each in AT-1 bonds and tier-2 bonds. It raised Rs 2500 crore through share sales during this quarter.

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Canara Bank Q1 results: Net profit rises nearly three-fold

Public sector lender Canara Bank’s net profit nearly tripled to Rs 1,177 crore at the end of the June quarter on a sharp rise in fee income and treasury gains. The lender reported a net profit of Rs 406 crore in the year-ago period.Non-interest income, including fees and treasury gains, rose 67.5% year-on-year to Rs 4,438 crore.Net interest income was flat at Rs 6,147 from Rs 6,096 last year.

Asset quality improved with the gross NPA ratio at 8.5% during the quarter from 8.84% a year ago. The net NPA ratio stood at 3.46% from 3.95%. Total provisions rose nearly 18% year-on-year to Rs 4,574 crore at the end of the June quarter. This included a one-time income tax provision of Rs 845 crore. The bank also holds Covid-related provisions of Rs 842 crore.

The bank reported Rs 4,253 crore of fresh slippages, which fell sharply on a sequential basis. Around 19% of slippages came from the retail segment and 56% from MSMEs. Loans worth Rs 13,234 crore were restructured under the Covid 2.0 scheme, of which Rs 7,610 crore were from the retail sector and Rs 3,331 crore from MSMEs.

“For the retail and MSMEs borrowers who we have assisted with the Covid recast scheme a part of them have started to pre-pay and we are hopeful that as the business momentum recovers a large part of these accounts will normalise,” said LV Prabhakar, managing director, Canara Bank. “As of June 30, our collection efficiency is 91%.”

Net interest margin for the quarter fell to 2.71% from 2.84% a year ago. Total loans grew by 5.94% to Rs 6.6 lakh crore, of which retail loans grew at 9.57% while agriculture loans rose 17.03%. The bank said it is targeting an annual credit growth rate of 7-8%.

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Canara Bank Q4 result: reports net profit

 

Canara Bank swung to profit in March quarter as it reported a net profit of Rs.1,011 crore in Q4FY21 as compared to Rs.3,259 crore of net loss posted in the same quarter last year. The bank's net interest income (NII) rose 68.4% to Rs.5,589 crore as against Rs.3,318 crore year-on-year (YoY).

The asset quality deteriorated as the gross non-performing assets (NPA) stood at 8.93% versus 7.46% on a sequential basis while the net NPAs stood at 3.82% as compared to 2.64%. Provisions and contingencies fell to Rs.4,134 crore from Rs.5,375.38 crore on a yearly basis.

Canara Bank's other income in Q4 jumped to Rs.5,207 crore from Rs.2,174.95 in the corresponding quarter of the previous fiscal.

The bank said that the ongoing Covid situation continues to be uncertain and it is evaluating the situation on an ongoing basis. The major identified challenges for the Bank would arise from eroding cash flows and extended capital cycles.

Despite the challenges, the management believes that no adjustments are required in the financial results as it does not significantly impact the current quarter. Despite these events and conditions, there would not be any significant impact on Bank's results in future and going concern assumptions as at presently made, it ad.

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Canara Bank Q3 standalone net profit dips 9%

State-run Canara Bank on Wednesday reported a 9 per cent decline in its standalone net profit to Rs 696 crore on higher provisioning.

The bank amalgamated Syndicate Bank with itself effective April 1, 2020. The financials as of December 2019, March, June and September 2020 are combined figures of both banks, the bank said in its investors presentation.

The amalgamated entity had posted a standalone profit after tax of Rs 764 crore in the December quarter of the previous fiscal. The pre-amalgamation standalone profit in Q3 FY21 stood at Rs 329.62 crore. The bank further reported a consolidated net profit of Rs 739.20 crore in the third quarter ended December of the current fiscal as against Rs 406.43 crore during the year-ago period. However, the consolidated profit of Q3FY21 is not comparable year-on-year.

"We want to make our balance sheet very strong and it should be future ready," the bank's managing director and CEO L V Prabhakar told reporters.

The bank has an additional provisioning of Rs 1,901 crore as of today. In Q3, it did Rs 738 crore of floating provision. Apart from that, it has not recognised Rs 413 crore of interest on probable NPA. If it had added both of these, the profit could have gone more than Rs 1,500 crore, he stated.

Net-interest income grew by 14.58 per cent to Rs 6,081 crore as against Rs 5,307 crore. Its domestic net interest margins improved 26 bps.

The lender reported a 210 per cent growth in its treasury income at Rs 2,016 crore as against Rs 650 crore in the same quarter of the previous fiscal.

"The mix of the securities which we have has given us the leverage encash the situation and to book profit. We have a robust risk management system and it has helped us," he said.

Gross non-performing assets (GNPA) ratio reduced to 7.46 per cent from 9.82 per cent last year. Net NPAs also declined to 2.64 per cent from 5.62 per cent.

Prabhakar expects GNPA to be at 8.75 per cent and net NPA at 3.90 per cent by March-end.

Fresh slippages in the quarter stood at Rs 395 crore. Total cash recovery including recovery from written-off accounts stood at Rs 2,893 crore.

The lender expects recoveries worth Rs 6,000-7,000 crore in the fourth quarter, he said.

Prabhakar said the lender's one-time restructuring book stands at Rs 11,000 crore.

Provision coverage ratio (PCR) improved to 84.89 per cent from 70.37 per cent in the same quarter of the previous fiscal.

Its capital adequacy ratio (CRAR) stood at 13.69 per cent as at December 2020. Out of which tier-I is 10.45 per cent and tier-II is 3.24 per cent.

Its domestic advances grew 7.55 per cent to Rs 644,826 crore, and its retail lending portfolio increased by 9.33 per cent to Rs 113,835 crore.

The bank's domestic deposit rose 9.49 per cent to Rs 928,325 crore.

It expects a deposit growth of 8 per cent and credit growth of 6 per cent by the end of this fiscal.

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Canara Bank’s Q2 profit up 5.31%

 State-owned Canara Bank on Thursday reported a standalone net profit of Rs 444.41 crore for the three months to September. The lender had posted a net profit of Rs 364.92 crore during the same quarter of the previous fiscal year.

Total income (standalone) of the bank stood at Rs 20,836.71 crore in July-September period of 2020-21, as against Rs 14,461.73 crore in the same quarter of 2020-19, it said in a regulatory filing.

It further said the figures of September 2019 and March 2020 are related to standalone Canara Bank financials of pre-amalgamation period, and thus are not comparable with post-amalgamation financials of June 2020 and September 2020.

Canara Bank amalgamated Syndicate Bank with itself with effect from April 1, 2020.

Canara Bank's gross non-performing assets (NPAs) fell marginally to 8.23 per cent of the gross advances as of September 30, 2020, as against 8.68 per cent by end of September 2019.

In value terms, the gross NPAs or bad loans were at Rs 53,437.92 crore, up from Rs 38,711.33 crore.

Net NPAs fell substantially to 3.42 per cent (Rs 21,063.28 crore) from 5.15 per cent (Rs 22,090.04 crore).

Provisions for bad loans and contingencies for the reported quarter rose to Rs 4,016.81 crore as against Rs 2,037.97 crore.

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Canara bank Q1 net profit jumps 23%

 

Canara Bank on Wednesday reported 23.5% rise in standalone net profit at Rs.406.24 crore for June quarter 2020-21.

The public sector lender logged a net profit of Rs.329.07 crore in the same quarter of the previous financial year.Canara Bank, which amalgamated Syndicate Bank into itself with effect from April 1, 2020, however, said the earning figures are not comparable as these are related to standalone financials for pre-amalgamation period.

Total income in April-June 2020-21 increased to ₹20,685.91 crore from Rs.14,062.39 crore in the year-ago period, Canara Bank said in a regulatory filing.The bank's gross non-performing assets (NPAs) were up slightly at 8.84% of the gross advances as on June 30, 2020 as against 8.77% at June-end last year.

In absolute value, gross NPAs or bad loans stood at ₹57,525.52 crore as against ₹39,399.02 crore by the year-ago same period.Net NPA ratio, however, fell to 3.95% ( ₹24,355.23 crore) from 5.35% ( ₹23,149.62 crore).Provisions and contingencies for the first quarter were raised to ₹3,826.34 crore as compared to ₹1,899.13 crore in the year-ago period.

Of this, provisions for NPAs stood at ₹3,549.99 crore as against ₹2,282.70 crore a year ago.

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Canara Bank Q4 result, net loss widens

State-owned Canara Bank on Wednesday reported widening of its standalone net loss to Rs 3,259.33 crore for the fourth quarter ended March 2020.

The bank had registered a net loss of Rs 551.53 crore during the corresponding January-March 2019 quarter.

However, income on a standalone basis during January-March rose to Rs 14,222.39 crore, compared with Rs 14,000.43 crore in the year-ago period, Canara Bank said in a regulatory filing.

The lender made a huge provisioning of Rs 5,375.38 crore for the March 2020 quarter, even as it was lower than the Rs 5,523.50 crore parked aside for corresponding period of 2018-19.

For the full year 2019-20, there was a loss of Rs 2,235.72 crore during 2019-20. The public sector bank had posted a net profit of Rs 347.02 crore in 2018-19.

On asset quality, gross non-performing assets (NPAs) continued to remain at an elevated level of 8.21 per cent at the end of March 2020, slightly better than 8.83 per cent by the end of March 2019.

In value terms, the gross NPAs or bad loans of the bank stood at Rs 37,041.15 crore as on March 31, 2020, vis-a-vis Rs 39,224.12 crore in the year-ago period.

Net NPAs were, however, trimmed substantially to 4.22 per cent (Rs 18,250.95 crore) from 5.37 per cent (Rs 22,955.11 crore).

Provision coverage ratio as on March 31, 2020, stood at 75.86 per cent, compared with 70.97 per cent as on December 31, 2019, and 68.13 per cent as on March 31, 2019, it said.

The amalgamation of Syndicate Bank into Canara Bank was effected on April 1, 2020. In this connection, the Reserve Bank of India, with a view to obviating future build-up of stresses in the bank, advised Canara Bank to ensure a harmonisation provision as on March 31, 2020, with respect to the impact of divergence in asset classification across both the banks, it said.

Accordingly, based on the harmonisation process carried out by Canara Bank, the bank made the changes in asset classification and provisioning as per extant norms as at the year-end.

"The harmonisation process as above has resulted in increase in gross NPA by Rs 532.63 crore and increase in NPA provision by Rs 340 crore during the year ended on March 31, 2020," Canara Bank said.

Further, the Bengaluru-headquartered lender said it has availed option for deferment of provision in respect of frauds reported for Rs 2,349.59 crore requiring additional provision of Rs 1,989.26 crore in terms of option available as per the RBI circular.

Accordingly, an amount of Rs 497.31 crore has been charged to profit and loss account and an amount of Rs 1,491.95 crore have been charged to reserves and deferred for adjustment in subsequent quarters, it added.

On COVID-19, it said that due to lockdown impact on economy, the situation continues to be uncertain and the bank is evaluating the situation on an ongoing basis.

"The major identified challenges for the bank would arise from eroding cash flows and extended capital cycles. The bank is gearing itself on all the fronts to meet these challenges. The management believes that no adjustments are required in the financial results as it does not significantly impact the current financial year," it said.

Despite these events and conditions, there would not be any significant impact on the bank's results in future and going concern assumptions as at presently made, it added

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