Canara Bank reported a 116 per cent year-on-year (YoY) jump in third quarter standalone net profit at ₹1,502 crore on the back of a healthy growth in net interest income and decline in total provisions.
The Bengaluru-headquartered public sector bank had reported a net profit of ₹696 crore in the year ago period.
The profitability in the reporting quarter comes despite the bank providing the entire additional liability of ₹1354.90 crore on account of revision in family pension under the 11th industry-wide bipartite wage settlement.
Net interest income (the difference between interest earned and interest expended) was up 14 percent YoY at ₹6,945 crore (₹6,086 crore in the year ago quarter).
Non-interest income, comprising fee-based income, trading income, recovery in written-off accounts, declined 13 per cent YoY to ₹3,612 crore (₹4,153 crore).
Fresh slippages in the reporting quarter were lower at ₹2,699 crore against ₹6,896 crore in the preceding quarter. However, slippages in the reporting quarter were higher vis-a-vis year ago quarter’s ₹395 crore.
Net interest margin (net interest income/average interest earning assets) in the reporting quarter was higher at 2.83 per cent against 2.71 per cent in the year ago quarter.
Non-performing assets
Gross non-performing assets (GNPA) position improved to 7.80 per cent of gross advances against 8.42 per cent in the preceding quarter. Net NPA level also improved to 2.86 per cent of net advances against 3.21 per cent.
As at December-end 2021, global deposits increased by about 7 per cent YoY to ₹10,43,350 crore.
Low cost current account, savings account deposits increased to 34.60 per cent of domestic deposits against 33.41 per cent in the year ago period.
Global advances were up about 9.28 per cent YoY to ₹7,29,506 crore. Domestic gross advances increased by 8.84 YoY to ₹7,01,859 crore and overseas gross advances rose 21.61 per cent YoY to ₹27,647 crore.