Canara Bank Q3 profit jumps 60% on higher other income

4 February, 2015 7:47 AM

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Canara Bank Q3 profit jumps 60% on higher other income

Canara Bank 's third quarter net profit climbed 60.4 percent year-on-year to Rs 656 crore boosted by higher other income and lower provisions.

Net interest income, the difference between interest earned and interest expended, grew 6.9 percent to Rs 2,380.5 crore during October-December quarter compared to Rs 2,227 crore in same quarter last fiscal.

Other income (non-interest income) shot up 38 percent on yearly basis to Rs 1,176.2 crore and operating profit jumped 13 percent to Rs 1,797.30 crore in the quarter ended December 2014.

Provisions for bad loans declined 20 percent year-on-year (up 3.4 percent sequentially) to Rs 841.3 crore during the quarter with the provision coverage ratio at 59.44 percent at the end of December 2014.

Asset quality weakened a bit during the quarter as gross non-performing assets (NPA) increased 56 basis points Y-o-Y (up 43 bps Q-o-Q to 3.35 percent and net NPA rose 3 bps year-on-year (up 11 bps sequentially) to 2.42 percent.

Capital adequacy ratio (as per Basel III norms) stood at 9.87 percent in December quarter, declined compared to 10.19 percent in previous quarter and increased marginally compared to 9.83 percent in the year-ago period.

Operating expenses in Q3FY15 jumped 18.3 percent to Rs 1,759.4 crore and tax expenses spiked 131 percent to Rs 300 crore on yearly basis.

At 13:14 hours IST, the scrip of Canara Bank was quoting at Rs 447.75, up Rs 8.95, or 2.04 percent on the BSE.

Source: moneycontrol.com

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