Public sector Canara Bank has reported 52.1 per cent decline in net profit at Rs 228.9 crore in the first quarter ended June as against a net profit of Rs 478.84 crore in the same period of last year and a loss of Rs 3,905 crore in the March quarter. The bank has reported a nearly three-fold rise in bad loans of Rs 32,334 crore as on June 2016.
The bank’s provisions and contingencies rose to Rs 1,492.92 crore in the April-June quarter from Rs 1,359.73 crore in the same period a year ago.
Total income during the quarter under review declined to Rs 11,786.3 crore, from Rs 12,252.64 crore a year ago.
Bank’s asset quality deteriorated further as gross non-performing assets (NPAs) or bad loans stood at Rs 33,334 crore (9.71 per cent of gross advances) in the first quarter of 2016-17 against Rs 13,081 crore (3.98 per cent) in the same period of FY2015-16. Net NPAs too slipped to 6.69 per cent of net advances as against 2.74 per cent a year ago.
However, shares of Canara Bank closed at 253.70 per unit up 5.31 per cent on the BSE.