Canara Bank Q3 net profit drops 42.39% on higher provisioning

Public sector lender Canara Bank's net profit has dropped sharply by 42.39 per cent at Rs 409.35 crore for the third quarter ended December, hit mostly by higher provisioning for bad loans.
The city-headquartered bank had clocked profit after tax at Rs 710.51 crore in the October-December quarter of 2012-13.
Total income of the bank increased to Rs 10,935 crore during the quarter, from Rs 9,390.29 crore in the same period a year ago, Canara Bank Executive Director P S Rawat said today.
Income from the loans and advances for the quarter increased to Rs 7,360 crore with year-on-year growth of 23.5 per cent and non-interest income for the quarter stood at Rs 851 crore, Rawat said.

"Total expenses for the quarter was Rs 9,344 crore compared to Rs 7,874 crore for third quarter of FY'2013 and the operating expenses for the quarter stood at Rs 1,488 crore compared to Rs 1,317 crore for third quarter of FY 2013."
The net interest income for the quarter increased to Rs 2,227 crore with 12 per cent year-on-year growth, he said.

The bank's gross NPA stood at Rs 8,074 crore, with a gross NPA ratio of 2.79 per cent compared to 2.77 per cent as in December 2012, Rawat said.
The banks net NPA stood at Rs 6,870 crore with a net NPA ratio of 2.39 per cent compared to 2.35 per cent as in December 2012, he said.

Total provision made for the quarter was at Rs 1,182 crore compared to Rs 799 crore for second quarter and Rs 1,106 crore for the first quarter in FY14, he said.
The provision for NPAs during the quarter was Rs 543 crore and provisions made for depreciation on investments was Rs 157 crore, Rawat said.
Gross NPA ration was at 2.79 per cent compared to 2.77 per cent as in December 2012, despite spike in stressed assets at the industry level, Rawat said.
"Upgradation was of Rs 2,061 crore in nine months of this year compared to Rs 779 crore in the same period last year," he said.

The bank also registered record cash recovery at Rs 3,135 crore compared to Rs 2,477 crore as in December 2012.
Net Interest Income increased to Rs 6,409 crore with year-on-year growth of 10.7 per cent and non-interest income was at Rs 2,863 crore, up by 33.4 per cent year-on-year.
Ratio of E-transactions increased to 44 per cent compared to 22 per cent as in December 2012, he said.
The bank registered total deposits of Rs 4.09 lakh crore, up by 26.2 per cent year-on-year and advances at Rs 2.88 lakh crore, up by 31.8 per cent year-on-year, he added.
The bank has declared an interim dividend of 65 per cent, Rawat said, adding that global advances recorded 31.8 per cent growth to reach a level of Rs 28,7,700 crore compared to Rs 218242 crore as the in December 2012.