Canara Bank Posts Rs 300 Crore Net Profit During Q2, 2018

Despite higher provisions, leading public lender Canara Bank has announced a higher Rs 300 crore net profit for second quarter ending September 30, 2018 and said it was looking at more organic growth to boost its profits further.

The company had posted net profit of Rs 284.1 crore in the quarter ended September 2017.

The company's gross NPA was down at 10.56 percent against 11.05 percent, while net NPA was down at 6.54 percent versus 6.91 percent.

The net interest income was down 15 percent at Rs 3,281.3 crore, while provisions were up at Rs 2,835.1 crore versus Rs 2582.3 crore.

In the absolute term its gross NPA was up marginally at Rs 45,233.2 crore against Rs 44,659.6 crore, while net NPA was up at Rs 26,777.6 crore versus Rs 26,693.5 crore, QoQ.

Bank Executive Director P V Bharati told reporters that Canara Bank geared up for organic growth with enhanced focus on domestic business.

The net profit grew by 15.38 per cent YoY backed by a healthy 17.89 per cent YoY growth in Net Interest Income (NII). The good performance in NII growth was driven by 18 YoY growth in domestic advances supported by a retail credit growing at good pace at 35 per cent YoY.

The global business of the bank surged 12.49 per cent to reach Rs. 9.61 lakh crore, with specific thrust on domestic business which registered a robust growth of 18 per cent YoY to reach Rs. 9.12 lakh crore.

The global deposits improved by 11.18 per cent, while domestic deposits growth was higher at 15.95 per cent, she added.