Canara Bank Q2 profit dips 16% to Rs 529 cr

Higher provisioning for bad loans and contigencies led to the dip in net profit

Public Sector Canara Bank saw second quarter profits drop by 15.6 per cent to Rs 528.86 crore on higher provisioning for bad loans and contigencies.

The bank had posted a profit of Rs 626.84 crore in the July to September period last year.

The Bengaluru-based bank had seen total income increase to Rs 12477.95 crore in the second quarter due to improved treasury and retail banking operations. It had posted total income of Rs 11,915.21 crore in the same period last year.

The bank's provision for bad loans and contingencies grew by 48 per cent to Rs 1,212.31 crore as  against Rs 813.7 crore in the second quarter of last year. The gross non-performing assets or bad loans more than doubled to 4.27 per cent of advances as retail customers deferred payments for loans, as against 2.92 per cent in the same period last year.