Last Updated : Oct 29, 2020 08:09 PM IST | Source: PTI

Canara Bank Q2 net at Rs 444 crore

The lender had posted a net profit of Rs 364.92 crore during the same quarter of the previous fiscal year.

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State-owned Canara Bank on Thursday reported a standalone net profit of Rs 444.41 crore for the three months to September.

The lender had posted a net profit of Rs 364.92 crore during the same quarter of the previous fiscal year.

Total income (standalone) of the bank stood at Rs 20,836.71 crore in July-September period of 2020-21, as against Rs 14,461.73 crore in the same quarter of 2020-19, it said in a regulatory filing.

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It further said the figures of September 2019 and March 2020 are related to standalone Canara Bank financials of pre-amalgamation period, and thus are not comparable with post-amalgamation financials of June 2020 and September 2020.

Canara Bank amalgamated Syndicate Bank with itself with effect from April 1, 2020.

Canara Bank’s gross non-performing assets (NPAs) fell marginally to 8.23 percent of the gross advances as of September 30, 2020, as against 8.68 percent by end of September 2019.

In value terms, the gross NPAs or bad loans were at Rs 53,437.92 crore, up from Rs 38,711.33 crore.

Net NPAs fell substantially to 3.42 percent (Rs 21,063.28 crore) from 5.15 percent (Rs 22,090.04 crore).

Provisions for bad loans and contingencies for the reported quarter rose to Rs 4,016.81 crore as against Rs 2,037.97 crore.

Of this, the provisions for NPAs stood at Rs 3,532.81 crore as against Rs 2,295.61 crore.

On a consolidated basis, the net profit in Q2 FY21 came in at Rs 465.88 crore, from Rs 405.49 crore earlier.

Total income stood at Rs 22,681.05 crore, as against Rs 15,509.36 crore.

The consolidated financial statements (CFS) of the group companies comprise the results of nine subsidiaries, five associates, including 4 Regional Rural Banks (RRBs) and a joint venture, Canara Bank said.

The lender said it had declared fraud accounts amounting to Rs 3,981.63 crore as of March 30, 2020 and provided Rs 1,465.64 crore in FY20 and deferred the balance of Rs 2,515.99 crore for subsequent quarters.

"During the half year ended on September 30, 2020, Rs 2,515.99 crore is fully amortised by debiting Profit & Loss account and crediting to other reserves,” it said.

With regard to the Delhi Airport Metro Express account, the lender said it has kept it as standard in terms of a Supreme Court order and necessary guidelines issued by the Reserve Bank.

However, necessary provisions of Rs 14.64 crore have been made while amount not treated as NPA stands at Rs 58.55 crore, it added.

The overall Provision Coverage Ratio (PCR) as on September 30, 2020 was 81.48 percent, Canara Bank said.

On the COVID-19 impact, it said the bank is evaluating the situation on an ongoing basis.

"The major identified challenges for the bank would arise from eroding cash flows and extended capital cycles. Despite the challenges, the management believes that no adjustments are required in the financial results as it does not significantly impact the current quarter."

"Despite these events and conditions, there would not be any significant impact on Bank’s results in future and going concern assumptions as at presently made,” it said.

Canara Bank stock ended at Rs 85.60 apiece on BSE, down 1.67 percent from its previous close.
First Published on Oct 29, 2020 08:09 pm
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