MUMBAI: Leading public sector lender Canara Bank has reported a 22% jump in net income at Rs 4,752 crore in the June quarter led by rise in other income and improved asset quality which cushioned a marginal dip in net interest income.
The bank showed improved asset quality with the gross NPA ratio falling to 2.69 from 2.94, and net NPA ratio improving to 0.63 from 0.7. Credit cost too improved by 18 bps at 0.72%, the bank said in a statement Thursday.
In absolute terms, gross NPAs in the quarter fell to Rs 29,518.43 crore from Rs 31,530.03 in the March quarter, and net NPAs came down to Rs 6,765.24 crore from Rs 7,353.31 crore.
Provisions for contingencies increased to Rs 2,351.56 crore from Rs 1,831.71 crore while provisions for bad loans dropped to Rs 1,845.26 crore from Rs 2,847.09 crore.
Fresh slippages came down to Rs 2,129 crore from Rs 2,655 crore and the slippage ratio improved by 52 bps to 0.80. Recoveries from written-off accounts stood at Rs 1,414 crore.
Reflecting the asset-liability pricing mismatch, wherein lending rates are falling while deposit rates remain high or sticky, the bank saw its net interest income (NII) inching down 1.7% to Rs 9,009 crore from Rs 9,166 crore. However, other income came to the rescue of the bottom-line which grew 32.7% to Rs 7,060.5 crore from Rs 5,318.9 crore last year.
Canara Bank said its total advances increased 12.42% to Rs 10,96,329 crore, and deposits grew 9.92% to Rs 14,67,655 crore. Domestic deposits stood at Rs 13,38,742 crore up 8.74% and domestic advances rose 12.15% to Rs 10,32,142 crore.
Retail credit including farm credit grew 14.90% while retail loans grew 33.92% with housing loan growth at 13.92% and vehicle loans at 22.09%.