Here's what to expect from Canara Bank Q1 earnings

Moneycontrol Bureau

South-based state-owned lender Canara Bank is likely to report 4 percent year-on-year growth in its first quarter (April-June) net profit at 807 crore. Net interest income or the difference between interests earned and paid out, may grow 17 percent to Rs 2,163 crore, according to an average poll estimate by CNBC TV18. The bank will announce its Q1 earnings on August 3.

Since last one year Canara Bank shares dipped nearly 34 percent as against fall of just 4 percent in the Bank Nifty - the broader index for banking stocks.

Also read: Is corruption a common practice in corporate India?

Canara Bank had reported nearly 13 percent y-o-y decline in net profit to Rs 725 crore for the quarter ended March 31, 2013. The bank had recorded muted growth in its credit book, which was at Rs 2.42 lakh crore, up 4 percent y-o-y.

However, the lender may report 10 percent y-o-y growth both on loans and deposits in the first quarter earnings.

The public sector lender Public sector lender Canara Bank recently filed charges of fraud with the Central Bureau of Investigation (CBI) against Hyderabad-based media group Deccan Chronicle Holdings (DCHL) for siphoning off funds loaned to the company.

According to the complaint, the accused had obtained a loan of Rs 1,230 crore from the bank by providing forged documents. Later, the CBI registered a cheating case against its chairman, T Venkatrami Reddy.