MUMBAI: State-run Canara Bank has reported a sold 25.6% on-year jump in net income at Rs 5,155 crore on higher loan sales and improved asset quality for the December quarter.
Total income of the Bengaluru-based lender rose to Rs 39,881 crore from Rs 36,113.8 crore in the year-ago period. Of this the key net interest income stood at Rs 9,252.32 crore, up just about 1%. While the bank earned Rs 31,981.6 in interest it expended or paid back Rs 22,729.28 crore on its funds during the quarter, it said in a statement.
Overall asset quality improved gross NPAs falling to 2.08% from 3.34% a year go and net NPAs improving to 0.45% from 0.89%. The bank’s provision coverage ratio stood at 94.19%.
Its total business grew 13.2% to Rs 27,13,594 crore of which deposits constituted Rs 15,21,268 crore up 12.95% and advances stood at Rs 11,92,326 crore which grew 13.59%.
Of total advances, RAM credit grew by 18.70% to Rs 7,04,041 crore and retail credit grew 31.37% to Rs 2,73,395 crore with housing loan growth at 17.58% to Rs 1,21,172 crore and vehicle loan at 26.20%.
Fee income stood at Rs 2,327 crore up 6.50%, and credit cost declined by 25 bps to 0.64% and slippage ratio stood at 0.64% improved by 32 bps.
The key driver of the bottomline growth was treasury income which fetched a profit of Rs 4,764.29 crore, followed by retail banking with a profit of Rs 2,591.43 crore, while the wholesale banking segment reported a loss of Rs 650.61 crore.
On a consolidated basis, which includes subsidiaries and associates, the net profit stood at Rs 5,253.67 crore. This includes the bank's share of profit from associates like Canfin Homes and Canara Robeco Asset Management, which went public last month, and accounts for minority interests through an offer for sale. The divestment resulted in a pre-tax gain of around ₹1,800 crore on a consolidated basis.
During the quarter, the bank raised Rs 3,500 crore through Basel III compliant additional tier 1 (AT1) bonds through a private placement.
Unlike other banks, it did to make any provisions for the gratuities of its employees under the new labour codes.