By IANS,
Bangalore: State-run Canara Bank Wednesday reported a net profit of Rs.555 crore for the first quarter this fiscal, registering a whopping 353 percent year-on-year (YoY) increase over the Rs.123 crore posted in the corresponding quarter year ago.
“The net profit for the quarter has shot up due to multiple factors such as net interest income growing by 27 percent YoY to Rs.1,291 crore from Rs.1,019 crore, other income increasing by 29 percent to Rs. 474 crore from Rs.369 crore and lower provisioning,” Canara Bank chairman A.C. Mahajan told reporters here.
Non-tax provisioning and contingencies have been reduced to Rs.336 crore from a high of Rs.541 crore, a decline of 61 percent YoY.
The bank’s operating profit has also shot up by 48 percent YoY to Rs.1,041 crore from Rs.704 crore and net interest margin (NIM) improved to 2.7 percent from 2.57 percent year ago, up by 13 basis points.
“The bank had a robust first quarter as evident from healthy growth rates in aggregate business, total deposits, net advances and credit-to-deposit ratio going up by over two percent to 72.64 percent,” Mahajan said.
Aggregate business increased by 26 percent to Rs.334,325 crore from Rs.266,325 crore.
Total deposits went up by 24 percent to Rs.193,657 crore and net advances grew by 28 percent to Rs.140,668 crore.
“Overall income went up by 22.2 percent to Rs.4,558 from Rs.3,731 crore, while total expenditure growth was contained at 27 percent,” Mahajan added.