Higher provisioning drags Canara Bank net by 32 pc in Q2

Dragged down by higher provisioning, State-owned Canara Bank today reported a 32.5 per cent decline in net profit to Rs 356.91 crore during the second quarter of the financial year ended September 30, 2016.
The city headquartered bank had reported a net profit of Rs 528.86 crore during the corresponding period last year.
Total income dropped to Rs 12,187.12 crore duringthe quarter from Rs 12,477.95 crore in the year-ago period, the bank said in a statement.
Provision (other than tax) and contingencies of thebank during the quarter was Rs 1,585.74 crore compared to Rs 1,212.31 crore last year.
Of this, the provisioning for nonperforming assets during the quarter was Rs 1,558.37 crorecompared to Rs 979.19 crore during the corresponding quarterof the previous year.

The bank said its Gross NPA ratio was marginally up at 9.81 per cent in September 2016 from 9.71 per cent in June 2016 and 4.27 percent a year ago, while the Net NPA ratio was at 6.69 per cent,the same level as in June 2016 and 2.90 per cent a year ago.

The Provision Coverage ratio was at 51.75 per cent, up from 50.82 per cent in June 2016 and 59.81 per cent a year ago, it said.
While the bank's CASA Deposits during the quarter was at Rs 1.32 lakh crore, up 13.57 per cent y-o-y, it said the CASA share (domestic) improved to 29.11 per cent from 25.49 per cent last year.

The percentage share of non-interest income in total income improved to 14.62 per cent, up from 9.70 per cent a year ago, and the capital adequacy ratio improved to 12.19 percent, up from 11.04 per cent a year ago, it added.
The total branch network of the bank during the quarter increased to 5,868, including 8 overseas branches(London, Leicester, Johannesburg, New York, Hong Kong, Manama,Shanghai and Dubai), and the total number of ATMs expanded to10,026.