Canara Bank Q2 profit up 22 pc at Rs 365 crore, asset quality improves marginally

Government-owned Canara Bank said on Wednesday its net profit during the July to September quarter jumped by 22 per cent year-on-year to Rs 365 crore.

At the same time, operating profit grew by 9.37 per cent to Rs 2,545 crore, said a statement issued by Managing Director and Chief Executive Officer R A Sankara Narayanan.

Gross deposits were up by 10.4 per cent at Rs 6.09 lakh crore while gross advances moved up by 4.2 per cent at Rs 4.46 lakh crore. The total business in Q2 FY 20 ticked up by 7.7 per cent at Rs 1.05 lakh crore.

Significantly, the asset quality of the bank improved a bit with gross non-performing assets (NPAs) came down from 10.56 per cent to 8.68 per cent while net NPAs were down from 6.54 per cent to 5.15 per cent.

The provision coverage ratio improved from 61.4 per cent to 70.1 per cent. Capital to risk assets ratio (CRAR) as per Basel Ill norms improved from 12.62 per cent to 14 per cent.

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