Canara Bank profit falls 61 per cent to Rs 126 crorehttps://indianexpress.com/article/business/banking-and-finance/canara-bank-profit-falls-61-per-cent-to-rs-126-crorev-5038111/

Canara Bank profit falls 61 per cent to Rs 126 crore

The provisions and contingencies increased by 80 per cent to Rs 2,673.6 crore for the December quarter, compared to Rs 1,484.5 crore provided during the corresponding quarter of last fiscal.

Canara Bank’s net profit fell by 61 per cent to Rs 126 crore for the December quarter of FY18, on the back of higher provisions for NPA and mark to market loss that the bank incurred due to surge in yields. The bank’s net profit was Rs 322 crore a year ago.

The provisions and contingencies increased by 80 per cent to Rs 2,673.6 crore for the December quarter, compared to Rs 1,484.5 crore provided during the corresponding quarter of last fiscal.

Rakesh Sharma, MD and CEO, said: “Despite the huge increase in mark to market provision, we have incurred profit.”.

He said: “Our NII growth of 52.4 per cent and 11.29 per cent growth in non-interest income-excluding trading profits have significantly shielded us from the quarter-end surge in bond yields and resultant mark to market provisions.” Last month, yields on sovereign bonds rose sharply after the Centre announced additional borrowing of Rs 50,000 crore. FE