Canara Bank Net Profit up 11 Percent in 2014-15

Bengaluru, May 25 (IANS): State-run Canara Bank posted net profit of Rs.2,703 crore for 2014-15, registering 11 percent growth over Rs.2,438 crore in 2013-14.

For Q4 of fiscal 2014-15), net profit remained flat at Rs.613 crore as against Rs.611 crore in the same period of previous fiscal and declined 6.6 percent sequentially from Rs.656 crore posted in Q3.

“Our net profit in fourth quarter was under pressure due to provisions made for non-performing assets (NPA) and stressed assets in the accounts of infrastructure, power and manufacturing sectors,” bank executive director P.S. Rawat told reporters here Monday.

The bank made total provisions of Rs.4,248 crore for the fiscal, including Rs.1,120 crore in Q4.

Operating profit, which grew marginally 2.3 percent to Rs.6,950 crore for the fiscal from Rs.6,796 crore last fiscal, declined 8 percent in Q4 to Rs.1,733 crore from Rs.1,882 crore in like period year ago and 3.6 percent sequentially from Rs.1,797 crore in Q3.

Net interest income also declined 2 percent to Rs.2,486 crore from Rs.2,536 crore in Q4 though up 8 percent for the fiscal to Rs.9,664 crore from Rs.8,944 crore in the previous fiscal.

Net interest margin was 2.36 percent for domestic and 2.25 percent for global business.

Admitting that gross NPA ratio increased to 3.89 percent from 2.49 percent in the previous fiscal, Rawat said net NPA ratio also increased to 2.65 percent from 1.98 percent.

Gross NPA increased 72 percent to Rs.13,040 crore from Rs.7,570 crore in 2013-14 and net NPA 47 percent to Rs.8,740 crore from Rs.5,966 crore.

The bank’s business grew 11 percent to Rs.8,03,876 crore, with deposits growing 13 percent to Rs.4,73,840 crore and advances 9.6 percent to Rs.3,30,036 crore.