Canara Bank vaults as asset quality improves

Canara Bank gained 2.49% to Rs 253 at 14:51 IST on BSE after the state-run bank reported improvement in its asset quality in Q2 September 2013 over Q1 June 2013.

The announcement was made during market hours today, 12 November 2013.

Meanwhile, the S&P BSE Sensex was down 116.26 points or 0.57% at 20,383.18

On BSE, 10.62 lakh shares were traded in the counter as against average daily volume of 2.48 lakh shares in the past one quarter.

The stock hit a high of Rs 270.85 and a low of Rs 244.75 so far during the day. The stock had hit a 52-week high of Rs 550 on 14 January 2013. The stock hit a 52-week low of Rs 189.90 on 28 August 2013.

The stock had outperformed the market over the past one month till 11 November 2013, rising 1.52% compared with the Sensex's 0.18% fall. The scrip, however, underperformed the market in past one quarter, rising 0.98% as against Sensex's 9.06% rise.

The state-run bank has equity capital of Rs 443 crore. Face value per share is Rs 10.

Canara Bank during market hours today, 12 November 2013 reported 5.3% fall in net profit to Rs 625.94 crore on 13.3% rise in total income to Rs 10427.48 crore in Q2 September 2013 over Q2 September 2012.

Canara Bank's asset quality improved during Q2 September 2013 from Q1 June 2013. Gross non performing assets (NPA) declined to 2.64% in Q2 September 2013 from 2.91% in Q1 June 2013, but rose marginally from 2.58% in Q2 September 2012. Net NPA ratio reduced to 2.3% in Q2 September 2013 from 2.48% in Q1 June 2013, but rose from 2.12% in Q2 September 2012.

Provisions and contingencies rose 60.06% to Rs 674.03 crore in Q2 September 2013 over Q2 September 2012. However, it declined 26.43% to Rs 674.03 crore in Q2 September 2013 over Q1 June 2013.

Meanwhile, the state-run bank's board of directors at its meeting held today, 12 November 2013, approved the proposal of raising capital by way of preferential allotment of equity shares in favour of Government of India amounting to Rs 500 crore.

Further, the board has delegated the authority to the Chairman & Managing Director of the bank to do all the necessary / relevant acts/things and to decide on the matters connected with or incidental thereto.

The Government of India (GoI) holds 67.72% stake in Canara Bank (as per the shareholding pattern as on 30 September 2013).

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