Canara Bank Q2 profit seen down 39%, loan growth may impact NII

Public sector lender Canara Bank's second quarter profit is seen falling 39.5 percent year-on-year to Rs 320 crore and net interest income is likely to slip 7.3 percent to Rs 2,452.7 crore, according to analysts polled by CNBC-TV18.

Slippages are expected to decline sharply on sequential basis while lower loan growth & high gross non-performing assets may keep NII under pressure.

Analysts say if gross non-performing assets come below 10 percent (against 9.71 percent in Q1) then that will be positive.

They expect treasury gains due to softening of bond yield in Q2.