Canara Bank climbs 5% on three-fold increase in Q2 profit

NEW DELHI: Shares of Canara Bank jumped 5 per cent in early trade on Wednesday as the state-owned lender posted a three-fold on-year jump in standalone net profit at Rs 1,333 crore in the July-September quarter. In the second quarter of the previous financial year, Canara Bank had reported a net profit of Rs 444 crore.

The bank’s share price hit a high of Rs 203.80 on the National Stock Exchange as investors cheered a fall in provisioning for bad loans and a rise in non-interest income and operating profit in Q2FY22. At 11.30 am, the stock was trading 4.55 per cent higher at Rs 202.15 as against a rise of 0.30 per cent in the Nifty50 index.

While net profit showed a hefty increase, the bank’s net interest margin declined to 2.72 per cent versus 2.82 per cent over the same period a year ago. The net interest income, too, fell to Rs 6,273 crore in the July-September quarter from Rs 6,305 crore in the corresponding period a year ago. Total income registered a gain of 2.6 per cent to Rs 21,331 crore in Q2.


Operating profit rose 22 per cent to Rs 5,604 crore versus Rs 4,597 crore a year ago, while treasury income surged 95 per cent to Rs 1,754 crore. Non-interest income jumped 37.5 per cent to Rs 4,268 crore in the quarter under review. Provisioning for bad loans declined 24 per cent to Rs 2,678 crore.