State-run Canara Bank on Wednesday reported Rs 300-crore net profit, registering 15.4 per cent annual growth for the second quarter of fiscal 2018-19 from Rs 260 crore in the same period a year ago.
Sequentially too, net profit rose 6.4 per cent from Rs 282 crore a quarter ago.
In a regulatory filing, the city-based bank said total income for the quarter (Q2) under review grew 5.7 per cent on year to Rs 12,679 crore from Rs 11,995 crore in the like period year ago, but declined 3.9 per cent sequentially from Rs 13,193 crore a quarter ago.
Operating profit, however, declined 6.2 per cent annually to Rs 2,327 crore from Rs 2,480 crore and 21 per cent sequentially from Rs 2,933 crore a quarter ago.
Provisioning for bad loans shot up 31.4 per cent annually to Rs 2,835 crore from Rs 2,157 crore in the same period year ago and 10 per cent sequentially from Rs 2,582 crore a quarter ago.
Provisioning for NPA (non-performing assets) also increased 23 per cent annually to Rs 2,403 crore from Rs 1,950 crore but declined 2.6 per cent from Rs 2,466 crore.
Net Interest Income (NII) was up 17.9 per cent annually to Rs 3,281 crore from Rs 2,783 crore year ago, while Net Interest Margin (NIM) was up to 2.53 per cent from 2.34 per cent year ago.
Cash recovery improved 45 per cent sequentially to Rs 5,113 crore.
Gross NPAs increased 15.5 per cent annually to Rs 45,233 crore from Rs 39,164 crore in like a period year ago and 1.3 per cent sequentially from 44,659 crore quarter ago.
Net NPAs also increased 6.4 per cent annually to Rs 26,778 crore from Rs 25,166 crore but remained flat sequentially (0.3 per cent) from Rs 26, 694 crores a quarter ago.
"Gross NPA ratio at 10.56 per cent declined marginally from 11.05 a quarter ago but remained flat at 10.51 per cent, while net NPA dipped to 6.54 per cent from 7.02 per cent a year ago and 6.91 per cent quarter ago.
The bank's global business surged 12.5 per cent on year to Rs 9.61-lakh crore, with 18 per cent on year growth in domestic business to Rs 9.12-lakh crore.
Deposits grew 11 per cent on year Rs 5.52 lakh crore, while net advances went up 14 per cent to Rs 4.10-lakh crore.
"We are geared up for organic growth with the greater focus on domestic business. Net Interest Income's (NII) 18 per cent growth on a year to a was driven by domestic advances, including 35 per cent on year growth in retail credit," said bank Executive Director B.V. Bharati in a statement.
(With inputs from agencies.)