Canara Bank reports 27 percent dip in second quarter

State-run Canara Bank today informed about the Rs 260 crore net profit for the second quarter of fiscal 2017-18 that is as much as 27 per cent on the lower side from Rs 357 crore in the same period year ago.

According to the statement released by the bank the CEO and Managing Director Rakesh Sharma said: “Net profit declined 27 per cent yearly due to higher provisions for bad loans or non-performing assets (NPAs).”

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Consecutively, on the other hand, net profit for Q2 is marginally up 3.2 per cent from Rs 252 crore quarter ago. There has been another aspect in which operating profit for the quarter under review was 16 per cent up to Rs 2,480 crore from Rs 2,141 crore in like period year ago and flat sequentially from Rs 2,472 crore quarter ago.

Provisions excluding tax shot up 36 per cent annually to Rs 2,157 crore in Q2 from Rs 1,586 crore year ago though dipping 2.1 per cent sequentially from Rs 2,204 crore quarter ago.

“The provision coverage ratio has improved to 54.75 per cent from 51.75 per cent last year,” said Sharma. “Our focus on NPA management will continue and we expect the net NPA to decline below 6 per cent by the fiscal year-end,” he added.

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