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Canara Bank reports 15.38 per cent increase in profit to Rs 300 crore

The bank's revenue in the second quarter improved 5.7 per cent year-on-year to Rs 12,679 crore.


Devdiscourse News Desk Bengaluru
Updated: 31-10-2018 20:18 IST
Canara Bank reports 15.38 per cent increase in profit to Rs 300 crore

The Provision Coverage Ratio has improved to 61.39 per cent from 54.75 per cent in the previous year, Bharathi said. (Image Credit: Twitter)

Canara Bank's net profit for the second quarter in fiscal 2019 grew 15.38 per cent year-on-year to Rs 300 crore backed by a healthy 17.89 per cent year-on-year growth in the net interest rate. The bank's revenue in the second quarter improved 5.7 per cent year-on-year to Rs 12,679 crore. "Our business and advances have gone up. Advances have gone up 14.31 per cent on a global basis.

Definitely, the growth in business has contributed to increases in our revenue," Canara Bank Executive Director M V Rao told reporters here Wednesday. The global business of the bank surged 12.49 per cent to reach Rs 9.61 lakh crore, with specific thrust on domestic business which registered 18 per cent growth year-on-year to reach Rs 9.12 lakh crore, Bank's Executive Director P V Bharathi said. Global deposits improved by 11.18 per cent, while domestic deposits growth was higher at 15.95 per cent, she said. The gross NPA fell to 10.56 per cent compared to previous quarter which stood at 11.05 per cent and Net NPA to 6.54 per cent compared to previous quarter which stood at 6.91 per cent, backed by significant recoveries and upgradations, Bharathi said.

The Provision Coverage Ratio has improved to 61.39 per cent from 54.75 per cent in the previous year, Bharathi said. The comfortable CRAR of 12.62 per cent, up from 12.45 per cent a year ago, highlights that the bank is well cushioned for an organic growth that it aims at, she said. On a road to sustained growth, the bank is keen on strengthening the balance sheet through augmenting retail business, digitalization and transformation, Bharat hi said. The robust business growth, both global at 12.49 per cent and domestic at 16 per cent, stands as a testimony with improved CD ratio 74.20 (global) and 74.03 (domestic), she said.

The improvement in the share of retail loans in the total credit has de-risked the balance sheet, she said. Going ahead, the management is highly optimistic about sustaining the growth momentum with present capital and potential business growth, Bharathi said.

(With inputs from agencies.)

COUNTRY : India