The Canara Bank posted a slip of 21% net profit at Rs 875 crore as compared to Rs 1,105 crore in the corresponding quarter last fiscal. However, total income was higher at Rs.8,591.15 crore against Rs.6,444.55 crore.
Announcing the results on Friday, Chairman and Managing Director S. Raman said but for provisioning for an “impaired asset,” and higher depreciation of investments, profitability would have been higher during the quarter.
Company said deposits was up by 19.7% during the quarter; advances up by 15.5% during the same period a year ago.
There was a drop in net interest margin (NIM) at 2.64%, whereas earlier it was at 3.21%.
The bank's net interest margin (NIM) during the quarter was 2.64% down from 3.21 per cent a year earlier.
Gross non-performing assets (NPA) were at Rs. 3,999 crore, 45% higher than a year earlier which was at Rs 2753.34.
The net NPA ratio was worse which from 1.05% to 1.49% during this period.
“We have been careful in choosing our accounts this year,” Mr. Raman further added.
On Friday, the shares of the bank losed at Rs 464.45 down by 15.50 points or 3.23%.