MUMBAI: The fourth largest public sector lender Canara Bank has reported 33.2% jump in net income at Rs 5,002.7 crore for the March quarter on improved asset quality and other income as its core income slipped marginally during the reporting period.
Apart from the significant improvement in the asset quality the other key metrics that helped the bottom line surge are a massive 20% jump in fee income at Rs 2,335 crore, a 4 bps fall in credit cost at 0.92% and a 38 bps fall in the slippage ratio at 0.90.
The Bengaluru-based bank said its total income rose 9.8% to to Rs 37,352.80 crore in the reporting quarter of which the key net interest income fell 1.44% to Rs 9,442 crore compared to Rs 9,580 crore in the trailing 12 months period.
The bank saw its asset quality improving significantly, with the gross bad loans ratio falling to 2.94 from 4.23 and the net non-performing assets ratio also improving to 0.70 from 1.27.
Total deposits rose to Rs 14,56,883 crore, logging in a growth of 11.01%, while advances jumped 11.74% to Rs 10,73,332 crore of which retail, agriculture, MSME (RAM) credit rose 13.23% to Rs 6,10,127 crore. Total business rose to Rs 25,30,215 crore, a growth of 11.32% on-year.
Of the RAM book, retail credit soared 42.80% to Rs 2,23,366 crore, with housing loan growth at 13.57% at Rs 1,06,167 crore, and vehicle loan at 19.63%, the bank said, adding credit to small and marginal farmers stood at 13.42% of PSL target, against the norm of 10%.