Canara Bank’s pre-tax profit falls 15% in Q1

Provisions and contingencies were raised to ~3,826 cr, against ~1,899 cr in the year-ago period

Canara Bank on Wednesday reported a 15.11 per cent decline in its pre-tax profit in the June quarter on sharp rise in provisions and contingencies. The PBT fell to ~459.12 crore against ~540.88 crore in Q1FY20.

Its standalone net profit rose 23.5 per cent at ~406.24 crore. The public sector lender logged a net profit of ~329.07 crore in the same quarter of the previous financial year. Canara Bank, which amalgamated Syndicate Bank into itself with effect from April 1, 2020, however, said the earning figures are not comparable as these are related to standalone financials for pre-amalgamation period.

Total income in April-june 2020-21 increased to ~20,685.91 crore from ~14,062.39 crore in the year-ago period, Canara Bank said in a regulatory filing.

The bank’s gross NPAS were up slightly at 8.84 per cent of the gross advances as on June 30, 2020 as against 8.77 per cent at June-end last year.

In absolute value, gross NPAS or bad loans stood at ~57,525.52 crore as against ~39,399.02 crore by the year-ago same period. Net NPA ratio, however, fell to 3.95 per cent (~24,355.23 crore) from 5.35 per cent (~23,149.62 crore). Provisions and contingencies for the first quarter were raised to ~3,826.34 crore as compared to ~1,899.13 crore in the yearago period. Of this, provisions for NPAS stood at ~3,549.99 crore as against ~2,282.70 crore a year ago.

“Figures are related to standalone Canara Bank financials for pre-amalgamation period, hence not comparable with post-amalgamation financial for the quarter ended June 30, 2020,” it said.