Canara Bank on Friday announced a net loss of Rs 4,860 crore for the fourth quarter ended March 2018 due to a three-fold rise in provisions towards non-performing assets (NPAs).
The bank took a tax writeback of Rs 2,450 crore during the quarter, without which losses would have been steeper. The bank’s quarterly loss is the second biggest quarterly loss reported by a public sector bank during the bad loan clean-up, which began with the Reserve Bank of India’s asset quality review in 2015. Bad loans surged on account of the Reserve Bank of India’s circular on revised guidelines, divergence of Rs 3,248 crore in classification of non-performing assets (NPAs) and some pain in the agriculture loans.
Provisions during the quarter shot up by 200 percent to Rs 8,762.5 crore for the January to March period 2018 from Rs 2,924 crore in the same period last year.
Gross NPAs jumped to Rs 47,468 crore as on March end 2018, up 18 per cent from Rs 40,312 crore in the December quarter. As a percentage of total loans, gross NPAs worsened to 11.84 per cent from 10.38 per cent in the preceding quarter.