Higher non-core income and better asset quality that led to lower provisions for dud assets boosted state-run lender Canara Bank’s net income by over 12 percent to ₹4,104 crore in the December quarter despite a poor show on the margins and net interest income fronts as both declined.
The management of the Bengaluru based lender told reporters in a concall on Monday that the fee income of the bank grew by 23.3 percent to ₹2,185 crore while the core net interest income declined close to 3 percent to Rs 9149 crore while net interest margins declined to 2.8 percent from 303 percent.
On the asset quality front the bank said gross bad loans declined by 105 bps to 3.34%, and the net bad loans improved by 43 bps to 0.89%. This has had the credit cost improving by 8 bps to 0.89% while the slippages ratio came down by 28 bps to 0.96%.
The bank said total business rose 9.3 percent to ₹24,19,171 crore, of which deposits stood at ₹ 13,69,465 crore which grew 8.44% and advances stood at ₹10,49,706 crore, which’s was more than 10.45% of the previous year. Within the total assets retail including agri and MSME credit grew by 12.32%.
Retail credit grew by 35.46% led by that clipped at 12.26% and vehicle loans at 17.26%.
The bank has achieved targets on the priority sector lending at 44.33% and farm credit at 21.04% as against the norm of 40% and 18% respectively.
Credit to small and marginal farmers stood at 14.35% as against the norm of 10%. Credit to the weaker sectors stood at 20.43% as against the norm of 12%.