Canara Bank Q1 profit rises nearly three-fold to Rs 1,177 cr

Canara Bank on Tuesday reported a nearly three-fold jump in standalone net profit at Rs 1,177.47 crore for the quarter ended June 30, helped by a reduction in bad loans.

The public sector lender had logged a net profit of Rs 406.24 crore in the same quarter of the previous financial year.

During the June quarter last year, Canara Bank had amalgamated Syndicate Bank into itself with effect from April 1, 2020.

Total income in April-June increased marginally to Rs 21,210.06 crore, from Rs 20,685.91 crore in the year-ago period, Canara Bank said in a regulatory filing.

The bank's gross non-performing assets (NPAs) declined slightly at 8.50 percent of the gross advances as of June 30, 2021, as against 8.84 percent at June end last year.

Net NPA ratio too fell to 3.46 percent, from 3.95 percent in the same quarter a year ago.

As a result, provisions, and contingencies for the first quarter came down to Rs 3,728.52 crore as compared to Rs 3,826.34 crore in the year-ago period.

Of this, provisions for NPAs significantly reduced to Rs 2,334.88 crore, as against Rs 3,549.99 crore a year ago.

The Provision Coverage Ratio (PCR) improved to 81.18 percent as of June 2021, from 78.95 percent as of June 2020, the bank said in a statement.

The capital adequacy ratio of the bank stood at 13.36 percent as of June 2021. Out of which Tier-I is 10.34 percent and Tier-II is 3.02 percent, it said.

The bank said it plans to raise Rs 9,000 crore through a mix of debt and equity to enhance its capital base to fund its business growth during the current fiscal.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)