One-Time Gain Pushes Canara Bank In The Black, Provisions Spike
The divestment of 13.45 percent stake in Canfin Homes Ltd. earned the bank a profit of Rs 703.91 crore.
State-owned Canara Bank Ltd. posted a net profit of Rs 214.8 crore in the last quarter of financial year 2016-17, compared to a loss of Rs 3,905 crore in the same period last year, as a one-time gain of Rs 703.91 crore aided the bottomline. The lender sold 13.45 percent stake in its housing finance arm Can Fin Homes Ltd. in March.
Net interest income grew by 14 percent to Rs 2,708 crore missing the consensus estimate of analyst tracked by Bloomberg which stood at Rs 2,613 crore.
Asset quality remained stable during the quarter. The bank's gross non-performing assets (GNPA) in absolute terms remained flat sequentially at Rs 34,202 crore compared to Rs 34,338 crore in the October-December quarter. GNPA delined to 9.63 percent from 9.97 percent sequentially. Net Non-Performing Assets for the bank declined to 6.33 percent from 6.72 percent in the previous quarter.
Provisions almost doubled sequentially to Rs 2,924.08 crore compared to Rs 1,486.68 crore in the October-December quarter.
The capital adequacy ratio (CAR) stood at 12.86 percent. The provisions coverage ratio (PCR) stood at 55.6 percent.
The board has approved a dividend of Rupee 1 per share, according to stock exchange filings.
Shares of the bank gained as much as 2.4 percent to Rs 404.