Canara Bank Q3 net profit zooms to Rs 750 crore

Canara Bank on Wednesday reported a consolidated net profit of Rs 749.73 crore for October-December quarter. The state-owned bank had posted a net profit of Rs 397.65 crore in the year-ago quarter.

However, as the consolidated results also include operations of Syndicate Bank, which amalgamated with Canara Bank, they are not comparable with that of the year-ago period. The amalgamation of Syndicate Bank with Canara Bank came into effect on April 1, 2020.

On a standalone basis, the bank's net profit more than doubled to Rs 696.06 crore from Rs 329.62 crore a year ago. Its consolidated total income grew to Rs 24,490.63 crore during the quarter under review from Rs 15,531.80 crore in the corresponding quarter a year ago.

Its current account and savings account (CASA) deposits rose 14.89 per cent to Rs 3,10,156 crore.

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On asset front, Canara Bank's gross NPAs (non-performing assets) contracted 236 basis points year-on-year to 7.46 per cent of the gross advances. In value terms, gross NPAs stood at Rs 49,789 crore. Net NPAs declined by 298 basis points to 2.64 per cent, while in value terms, they stood at Rs 16,774 crore.

If not for the Supreme Court order, directing that the accounts not declared as NPA till August 31, 2020 should not be declared as NPA till further orders, the bank's gross NPAs and net NPAs would have stood at 8.95 per cent and 3.93 per cent, respectively.

"Provision aggregating to Rs 1,901 crore (including COVID-19 provision of Rs 1,038.37 crore) made against the accounts which were standard as on 31.08.2020 but would have been slipped to NPA as on 31.12.2020 had the Hon'ble Supreme Court Dispensation not been reckoned," Canara Bank said.

Its provision coverage ratio was at 84.89 per cent at the end of December quarter.

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