Canara Bank saw its net profit drop 32 per cent to ₹357 crore in the second quarter of this fiscal (FY17). This despite a 47 per cent jump in other income to ₹1,782 crore. Net interest income (income earned less interest spent) was down nearly 8 per cent to ₹2,443 crore.
Loan growth was anaemic at a mere 1.25 per cent, and deposits were a shade lower than a year ago. The banking system’s overall credit grew at about 8 per cent during the past one year.
Asset quality concerns continued to dominate the negative picture for the bank. Its net non-performing assets more than doubled from ₹9,383 crore to ₹21,887 crore. As a proportion of total advances, they rose to 6.69 per cent from 2.90 per cent a year ago.
On the BSE, the Canara Bank stock was down 3.25 per cent, or ₹10.55, to ₹312.95 after the results came in. The stock closed at ₹314.20.
The stock has been on an upward trajectory during the past seven months from a low of ₹158 in end-February.