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Canara Bank Q3 Earnings: Net profit doubles to Rs 1,502 crore, beats Street estimates – CNBCTV18

State-run Canara Bank on Thursday reported a net profit of Rs 1,502 crore for the quarter ended December, beating Street estimates. The lender’s net profit more than doubled on a year-on-year basis. It had posted a net profit of Rs 696.1 crore for the corresponding period a year ago.

The bank’s quarterly net interest income (NII) — the difference between interest earned and interest paid — increased 14.1 percent on year to Rs 6,945 crore, according to a regulatory filing.

Analysts in a CNBC-TV18 poll had predicted the lender’s net profit at Rs 1,340.2 crore and NII at Rs 6,413.4 crore.

The lender’s asset quality, ex-RBI-dispensation in Q3 FY21, was the best in 24 quarters. Its gross non-performing assets (NPAs) came down to 7.80 percent in Q3, from 8.42 percent in the previous quarter. Its net NPAs reduced to Rs 19,819 crore from Rs 20,862 crore sequentially.

Canara Bank reported provisions of Rs 2,245 crore for the third quarter of the current financial year, as against Rs 3,360 crore for the quarter ended September 2021. For the quarter ended December 2020, it had made provisions of Rs 4,210 crore. Its NPA provisions remained elevated at Rs 2,704 crore, up 15.85 percent sequentially.

Other income was weak at Rs 3,611 crore, down 15.5 percent YoY and 18.6 percent sequentially. Its deposits rose 2 percent sequentially and 7.23 percent YoY to Rs 10.23 lakh crore and advances rose 6.5 percent QoQ and 9.1 percent YoY to Rs 6.92 lakh crore.

The bank’s cost to income ratio came in at 45 percent, down 3 percent from 48 percent reported in the corresponding quarter of the previous fiscal. Its operating profits rose 7.8 percent YoY and 0.9 percent QoQ to Rs 5,802.5 crore.

The bank could keep its annualised credit cost under control at 1.56 percent versus 1.44 percent in the previous quarter and 1.68 percent in the  corresponding quarter of the previous fiscal

Canara Bank shares closed over 8 percent higher Thursday to Rs 240 apiece on NSE after the earnings announcement.

(Edited by : Yashi Gupta)

First Published:  IST