Canara Bank Q3 PAT zooms 111% YoY to Rs 696 cr

The PSU lender reported 111% jump in net profit to Rs 696 crore on a 53.4% rise in total income to Rs 21,479 crore in Q3 December 2020 over Q3 December 2019.

Profit before tax stood at Rs 1,056.76 in Q3 December 2020, a 98% spurt over Rs 531.42 crore in Q3 December 2019. Total tax expense spiked 78.7% to Rs 360.7 crore in Q3 December 2020 over Q3 December 2019.

Operating profit increased 46.65% to Rs 5382 crore in Q3 December 2020 from Rs 3670 crore in Q3 December 2019. The bank's net interest income grew by 14.58% year on year to Rs 6081 crore in Q3 December 2020.

On the asset quality side, gross non-performing assets (NPAs) stood at Rs 49,788.61 crore as on 31 December 2020 as against Rs 53,437.92 crore as on 30 September 2020 and Rs 36,644.97 crore as on 31 December 2019.

The ratio of gross NPAs to gross advances stood at 7.46% as on 31 December 2020 as against 8.23% as on 30 September 2020 and 8.36% as on 31 December 2019. The ratio of net NPAs to net advances stood at 2.64% as on 31 December 2020 as against 3.42% as on 30 September 2020 and 5.05% as on 31 December 2019.

Provisions and contingencies spiked 140% to Rs 4324.75 crore in the third quarter as against Rs 1802.91 crore in the same period last year. The bank said it has made provision aggregating to Rs 1901 crore (Including Covid-19 Provision of Rs 1038.37 crore) made against the accounts which were standard as on 31 August 2020 but would have been slipped to NPA as on 31 December 2020 had the Supreme Court Dispensation not been reckoned. The PSU lender further said its provision coverage ratio as of 31 December 2020 stood at 84.89%

Shares of Canara Bank were down 0.07% at Rs 133.50. The Government of India held 56.19% stake in the state-owned commercial bank as of 31 December 2020.

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