We hope to see more resolutions of bad loans this year, says Rakesh Sharma

Mumbai: Sale of equity stake of Canfin Homes and rise interest income helped Canara Bank shore up its bottomline in the fourth quarter of the fiscal year 2016-17.

The bank, posted net profit of Rs 214 crore in the fourth quarter ending March 2017 as against Rs 321 crore in third quarter. The profits of the corresponding year where the bank reported a historic loss of Rs 3905 crore cannot be compared since RBI had directed all banks to make provisions on stressed accounts under the asset quality review.

The bank announced 10% dividend for the year 2016-17. The bank sold 13.4% stake in Canfin Homes for Rs 704 crore which boost bank’s earnings. The bank stressed loans which is restructured loans and gross non-performing loans fell to 12.5% against 13.4% a year ago.

Speaking to ET, CEO Rakesh Sharma said, “We hope to see more resolution of bad loans this year. So stressed loans are expected to come down. Also, we plan to focus NPA recovery and resolution this year.”

He said that the bank had divergence of Rs 507 crore on gross NPA and Rs 537 crore divergence for provisions. The advances grew 5.35% while deposits rose 3.2%. During this year, Sharma said that the bank is targeting 10-11% credit growth and 7-8% deposit growth.