Canara Bank Q1 net up 10 per cent to Rs 251 crore, core income down

New Delhi: Public sector player Canara Bank has registered 9.9 per cent growth in net profit to Rs 251.60 crore for the first quarter of the current fiscal as its interest income fell.

In contrast, the bank's net profit in the April-June quarter of the previous fiscal, 2016-17, was Rs 228.95 crore.

The total income of the bank grew to Rs 12,304.10 crore for the June quarter of 2017-18 as against Rs 11,786.35 crore, as per its regulatory filing.

Its interest income fell to Rs 10,195.59 crore for the quarter, compared with Rs 10,201.70 crore a year ago even though investment income rose only slightly to Rs 2,733 crore from Rs 2,505.11 crore.

On the asset side, there was a worsening with gross non- performing assets (NPAs) rising to 10.56 per cent of the gross advances as at the end of June 2017 from a level of 9.71 per cent year earlier.

Its net NPAs or bad loans were 7.09 per cent of net advances on June 30, 2017 from 6.69 per cent year ago. Thus, there was a spike in bank's provisioning for bad loans to Rs 2,270 crore as against Rs 1,468.75 crore year ago.

Assets of the bank increased to Rs 5,79,875.32 crore as on June 30, 2017 from Rs 5,39,767.21 crore year ago. Provision coverage ratio stood at 54.52 per cent by June 30.

Canara Bank said it sold 16,600 units under priority sector lending certificates amounting to Rs 4,150 crore under agriculture and small and marginal farmers category as of June 30, 2017.

Stock of the Bengaluru-based public sector lender closed 0.58 per cent up at Rs 371 on BSE.