Canara Bank misses Street estimates, posts Rs 251 crore PAT; asset quality worsens

NEW DELHI: Canara Bank on Wednesday reported a 9.89 per cent year-on-year rise in profit after tax (PAT) at Rs 251.60 crore for the June quarter, which fell short of Rs 310 crore profit estimated by analysts in an ET Now poll.

This lender had reported Rs 214.18 crore profit in the corresponding quarter last year.

Gross non-performing assets for June quarter rose to 10.56 per cent from 9.63 per cent in the March quarter. Net nonperforming assets stood at 7.09 per cent compared with 6.33 per cent in the March quarter, the lender said.

NII interest income (NII), which is the difference between interest income a bank earns from its lending activities and the interest it pays to depositors, stood at Rs 2,714 crore, which was well short of ETNow’s poll estimate of Rs 2,619 crore.

The bank made Rs 2,204 crore worth of provisions during the first quarter compared with Rs 2,708 crore in the fourth quarter of FY17.

Ovreall, gross NPAs in absolute terms rose to Rs 37,658 crore in June quarter from Rs 34,202 crore in March quarter.