State-run lender Canara Bank's first quarter (April-June) earnings are expected to remain under pressure due to higher credit cost. Profit is likely to fall 74.1 percent to Rs 124 crore and net interest income may decline 4.6 percent to Rs 2400.4 crore compared with year-ago period, according to average of estimates of analysts polled by CNBC-TV18.
Net interest income is the difference between interest earned and interest expended.
Key things to watch out for would be:
Net interest margin may remain under pressure due to weak loan growth and stress in the balance sheet.
Operating profit growth is expected to remain under pressure due to high stressed assets and muted credit growth
Slippages are expected to be in Rs 5,000-6,000 crore range during the quarter against Rs 14,602 crore in Q4FY16.
Loan growth is likely to be flat for the quarter.
Analysts say if gross non-performing assets come below 11 percent then that will be positive. In Q4FY16, NPA stood at 9.4 percent.
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