Canara Bank stock surges 7% on improving asset quality

Canara Bank stock surged almost 7 per cent today after the company's asset quality improved in the fourth quarter ended March, 2014.
Shares of the state-owned lender gained 6.49 per cent to settle at Rs 304.20 on the BSE. In intra-day trade, the stock rose by 8.68 per cent to Rs 310.45.
At the NSE, the scrip zoomed 6.90 per cent to close at Rs 305.10.
"Canara Bank reported healthy numbers on the NII as well as asset quality front. The bank witnessed asset quality improvement during the quarter," Vaibhav Agrawal, VP Research - Banking, Angel Broking.
It recorded 15.8 per cent decline in net profit at Rs 610.83 crore for the January-March quarter of 2013-14 fiscal.

The lender had a net profit of Rs 725.38 crore in the January-March quarter of 2012-13 fiscal, Canara Bank said in a filing to the BSE today.

Total income of the bank increased to Rs 11,609.72 crore in the January-March quarter, from Rs 9,471.57 crore in the year-ago period.
As far as asset quality of the bank is concerned, the gross Non Performing Assets - as a percentage to total advances - declined to 2.49 per cent from 2.57 per cent in the same quarter an year ago.
Its net NPAs also came down to 1.98 per cent, from 2.18 per cent at the end of March 2013.

The board of the bank has proposed a final dividend of 45 per cent or Rs 4.5 per share of face value of Rs 10 for 2013-2014.