Moneycontrol Bureau
Public sector lender Canara Bank disappointed analysts on Friday by posting a huge loss of Rs 3,905.5 crore in January-March quarter (against profit of Rs 613 crore in year-ago period) due to a 6-fold jump in provisions despite tax write-back.
Net interest income, the difference between interest earned and interest expended, declined 4.5 percent to Rs 2,374.8 crore compared to year-ago period due to 1.6 percent fall in advances (at Rs 3.24 lakh crore). Deposits on yearly basis grew only 1.25 percent to Rs 4.79 lakh crore during the quarter.
The bank said other income increased 4.3 percent year-on-year to Rs 1,383.3 crore while operating profit fell 5 percent to Rs 1,646.55 crore in Q4.
Provisions for bad loans have seen a 4-fold (QoQ) and 6-fold (YoY) jump at Rs 6,331.5 crore in January-March quarter.
Asset quality deteriorated further in Q4 with gross non-performing assets (NPA as a percentage of gross advances) rising 356 basis points to 9.4 percent and net NPA climbing 252 bps to 6.42 percent on sequential basis.
In absolute terms, gross NPA shot up 59.7 percent quarter-on-quarter to Rs 31,638 crore and net NPA 61 percent to Rs 20,833 crore in March quarter.
The bank has tax write-back of Rs 779.5 crore during the quarter against expenses of Rs 110 crore in same period last year.
At 15:21 hours IST, the scrip of Canara Bank was quoting at Rs 195.70, down Rs 3.05, or 1.53 percent on Bombay Stock Exchange.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
