Canara Bank Q3 profit rises, provisioning falls

Canara Bank reported a 27% year-on-year rise in its net profit to ₹3,656 crore in the December quarter. The robust growth in the profit was driven by a drop in provisioning for bad loans. The provisioning for bad loans declined by 22.6% to ₹1,350 crore.

The net interest income – the difference between interest earned and paid – increased 9% to ₹9,417 crore. The net interest margin also improved by 9 basis points to 3.02%. The loan book also expanded around 12% to ₹9 lakh crore.

The asset quality also improved in the December quarter. The gross non-performing assets (NPA) or bad loans stood at 4.39% of the total loan book, down by 150 basis points. The net NPA ratio also dropped to 1.32%, down by 64 basis points.

On the liability side, the current account savings account deposits stood at 31.5% of the total domestic deposits. However, the management expects this ratio to improve to 35% in the March quarter.

Meanwhile, shares of Canara Bank are down 1.4% today.