State-run Canara Bank has reported a 10.5 percent on-year rise in net profit for the June quarter at Rs 3,905.3 crore on improved asset quality with lower bad loans and fresh slippages.
The Bengaluru-based lender said Thursday its gross bad loans or NPAs declined to 4.14 percent in the reporting quarter as against 5.15 percent in the year-ago period and net NPAs also declined to 1.24 percent from 1.57 percent.
In absolute terms, gross NPAs stood at Rs 40,356.38 crore compared to Rs 45,727.37 crore and net NPAs stood at Rs 11,701.77 crore compared to Rs 13,461.43 crore in the year-ago period. This had the bank’s provision coverage ratio improving by 118 bps to 89.22.
In the reporting period, fresh slippages of the bank declined to Rs 3,015 crore from Rs 3,188 crore in the year-ago period.
Total domestic deposit rose 11.47 percent to Rs 12.31 trillion from Rs 11.05 trillion of which the low cost Casa deposits grew 4.66 percent to Rs 3.81 trillion. Of the total, savings account stood at Rs 3.32 trillion, which was up 3.62 percent and term deposits grew 14.82 percent to Rs 8.50 trillion. Of this, retail term deposit stood at Rs 5.15 trillion.
On the other hand, global deposits of the state-owned lender stood at Rs 13.36 trillion, up from Rs 11.97 trillion.
Domestic gross advances grew 9.17 percent on-year to Rs 9.21 trillion of which retail, agri and MSME credit grew 12.26 percent to Rs 5.52 trillion. Of this, retail advances increased to Rs 1.76 trillion from Rs 1.43 trillion a year ago, registering a growth of 23.54 percent. Agriculture and allied advances grew 8.14 percent to Rs 2.53 trillion.
Corporate loans and others grew 6.87 percent to Rs 4.24 trillion, taking the gross advances up by 9.86 percent on-year to Rs 9.8 trillion in the reporting quarter.
The bank reduced its credit to non-banking finance companies by 18.15 percent on-year and 10.19 percent on a quarterly basis to Rs 1.19 trillion. Also, the lender reduced credit to the petroleum, coal and nuclear fuels industry by 11.82 percent on-year and 3.62 percent on-quarter.