Canara Bank on Monday posted a 15.72% decline in net profit for the quarter ended March, mainly on higher provisioning. The bank reported net profit of R611 crore for the quarter against R725 crore in the same period last year.
Sequentially, the bank's net profit grew 49.4% from R409 crore. The Canara Bank scrip gained 6.49% to close at R304.20 on the Bombay Stock Exchange on Monday.
Total income grew 22.6% to R11,610 crore from R9,472 crore in the year-ago period. The bank's net interest margin (NIM) stood at 2.27% at the end of the quarter against 2.40% a year ago.
The total provision made for the quarter was at R1,271 crore compared to R972 crore in same quarter last year, the bank said. “The provision for NPAs during the quarter was R802 crore against R346 crore in Q4FY13,” it said in a release.
For the full year ended March, Canara Bank reported a 15.11% decline in net profit at R2,438 crore from R2,872 crore in the previous fiscal. Total income grew 16.8% to R43,480 crore during the year from R37,231 crore in FY13.
“The bank has performed well in containing NPAs and making higher cash recoveries, despite continuing stress in the asset quality at the industry level,” the release said.
Gross NPA ratio for fiscal was at 2.49%, down from 2.57% in the previous year while net NPA ratio came down to 1.98% from 2.18%. The bank also said its cash recovery aggregated to a record level of R5,494 crore compared to R4,006 crore in FY13.