Canara Bank posts 3.8 pc growth in Q3 net profit at Rs 330 crore

Government-owned Canara Bank said on Thursday its standalone net profit rose by 3.81 per cent to Rs 330 crore in the third quarter ending December (Q3 FY20) as net non-performing assets (NPAs) came down from 10.25 per cent to 8.36 per cent.

While asset quality improved relatively, total income rose by 3.6 per cent Rs 14,002 crore in the year-on period. But tax expense surged by more than 223 per cent to Rs 202 crore in Q3 FY20 as compared with Rs 62 crore in Q3 FY19.

Gross deposits edged higher by 8.64 per cent to Rs 6.25 lakh crore while gross advances ticked up by 0.64 per cent to Rs 4.38 lakh crore. The total business moved up by 5.2 per cent in Q3 FY20 at Rs 10.63 lakh crore year-on-year.

The bank's NPAs stood at Rs 36,645 crore on December 31 as against Rs 38,711 crore at the end of the second quarter. The ratio of gross NPAs to gross advances stood at 8.36 per cent versus 8.68 per cent as on September 30, 2019, and 10.25 per cent as on December 31, 2018.

The ratio of net NPAs to net advances stood at 5.05 per cent at the end of Q3 FY20 as against 5.15 per cent at the end of Q2 FY20 and 6.37 per cent as on Q3 FY19.

The bank's provisions and contingencies (excluding tax provisions) declined by 8.9 per cent to Rs 1,803 crore in Q3 FY20 as against Rs 1,977 crore in the year-on period.

Provision coverage ratio as on December 31, 2019, stood at 70.97 per cent as against 62.54 per cent year-on-year while the capital adequacy ratio (Basel III) increased to 13.86 per cent as against 12.21 per cent.

.