New Delhi: Public sector lender Canara Bank on Monday reported over a twofold jump in net profit at Rs 317.52 crore for December quarter 2018 as provisioning for bad loans declined.
The bank had logged a net profit of Rs 125.75 crore in October-December 2017.
Total income in the reported quarter stood at Rs 13,513.35 crore as compared to Rs 12,341.09 crore in the year-ago period, the bank said in a regulatory filing.
The bank's asset quality improved a tad with gross non-performing assets (NPAs) falling to 10.25 percent of gross loans as at December-end 2018 against 10.38 percent in the year-ago period.
Net NPAs or bad loans too came down to 6.37 percent of net advances from 6.78 percent by December-end 2017.
In absolute value, gross bad loans of the lender stood at Rs 44,621.27 crore as on 31 December, 2018 as compared to Rs 40,311.98 crore a year ago.
Net bad loans were valued at Rs 26,591.07 crore as against Rs 25,295.26 crore.
Provisions and contingencies during the reported quarter stood at Rs 1,977.34 crore as compared to Rs 2,673.64 crore in the same period of 2017-18.
Provision Coverage Ratio at December-end 2018 was 62.54 percent.
Canara Bank said its employee stock purchase scheme (CanBank ESPS) which kicked off on 21 January and closed on 25 January was oversubscribed by 134 percent due to good participation from employees.
"Under the said issue of up to 2 crore equity shares under tranche-I, the bank will be raising capital of approximately Rs 557 crore," it said in the filing.
The completion of allotment procedure of the said issue and final allotment will be informed to stock exchanges as and when the same is completed, it added.
Stock of Canara Bank closed 5.23 percent down at Rs 240.30 on BSE.
To keep watching India’s No. 1 English Business News Channel – CNBC-TV18, call your Cable or DTH Operator and ask for the Colors Family Pack (inclusive of 24 channels), available for Rs. 35/- per month, or subscribe to the channel for Rs. 4/- per day.
To keep watching the Leader in Global Market & Business News – CNBC-TV18 Prime HD, call your Cable or DTH Operator and ask for the Colors Family HD Pack (inclusive of 25 channels), available for Rs. 50/- per month, or subscribe to the channel for Rs. 1/- per day.
The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
Updated Date: Jan 28, 2019 18:03:23 IST