Canara Bank net profit returns to black in fiscal 2017

State-owned Canara Bank's net profit returned to black in the fourth quarter and fiscal 2016-17 after going into red in the same period a year ago, said a top official on Monday.

"We posted Rs 214 crore net profit in the fourth quarter as against Rs 3,906 crore loss in the same period a year ago and Rs 1,122 crore net profit for the fiscal (FY 2017) as against Rs 2,813 crore loss for the previous fiscal 2015-16," Canara Bank Managing Director Rakesh Sharma told media here.

Sequentially, however, net profit in Q4 declined 34 per cent year-on-year (YoY) from Rs 322 crore in the third quarter (Q3).

Operating profit zoomed 81 per cent YoY to Rs 2,973 in Q4 from Rs 1,647 crore and 25 per cent YoY to Rs 8,914 crore for FY 2017 from Rs 7,147 crore in FY2016.

Though total income for Q4 increased 6.4 per cent YoY to Rs 12,889 crore from Rs 12,116 crore in like period year ago, interest earned declined 2.2 per cent YoY to Rs 10,493 crore from Rs 10,733 crore in same quarter year ago.

For FY 2017, total income at Rs 48,942 crore was flat as against Rs 48,897 crore in FY 2016, while interest earned declined 6 per cent YoY to Rs 41,388 crore from Rs 44,022 crore year ago.

Non-interest income (NII) grew 73.25 per cent YoY to Rs 2,396 crore and net interest income increased 14.1 per cent to Rs 2,708 crore in Q4. NII for FY 2017 increased 55 per cent YoY to Rs 7,554 crore.

Net interest margin was 2.39 per cent for domestic and 2.23 per cent global.

"Provisioning for non-performing assets (NPA) declined 50 per cent YoY to Rs 2,924 crore in Q4 from Rs 5,884 crore in same period year ago and 23 per cent YoY to Rs 7,438 crore for FY 2017 from Rs 9,608 crore for FY 2016," said Sharma.

Gross NPA declined sequentially to 9.63 per cent in Q4 from 9.97 per cent in Q3 and net NPA declined to 6.33 per cent in Q4 from 6.72 per cent in Q3.

"Cash recovery in Q4 was Rs 1,183 crore and Rs 4,162 crore for FY 2017," asserted Sharma, who is also the bank's Chief Executive Officer (CEO).

"Our Current Account and Savings Account deposits (CASA) increased 21.21 per cent YoY to Rs 1.5 lakh crore for FY 2017, cost of deposits decreased to 6.25 per cent in FY 2017 from 6.94 per cent in FY 2016," recalled Sharma.

Retail term deposits increased 16 per cent YoY to Rs 2 lakh crore for FY 2017.

"Our global business of Rs 8.37 lakh crore comprised Rs 4.95 lakh crore deposits and Rs 3.42 lakh crore net advances for the fiscal under review," added Sharma.

--IANS

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