State-owned Canara Bank is expected to report a profit after tax of Rs 913 crore in the third quarter of FY12, a fall of 17% as compared to Rs 1,105 crore in a year ago quarter.
Net interest income is seen going down 1.5% to Rs 2,085 crore from Rs 2,119 crore year-on-year. Highlights
- High exposure to corporate segment to lead to sharp decline in loan growth
* Loan growth to decline to 13% for FY13 (I-Sec)
- Loan growth expected at 21% YoY
- Deposit growth of 25%
- Expect margins to improve by 10 bps
- Slippages were Rs 1,240 crore in Q2 due to system based NPA recognition
* With entire portfolio transitioned, slippages are likely to normalise
- SEB exposure quite high - may lead to higher restructuring
- Muted NII growth and higher provisions would lead to PAT decline
- Infra exposure at 17% of loan book (of which SEB exposure: 6% of book) Management says
- Expect NIMs at around 2.8% for this fiscal
- Expect slippages to come down going forward
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