Canara Bank Q2 Results: Net profit jumps 43% to Rs 3,606 crore; asset quality improves

State-run Canara Bank on Thursday reported a standalone net profit of Rs 3,606.1 crore for the July-September period, an increase of 42.8 per cent compared with the corresponding period a year ago. 

Its net interest income, or the difference between interest earned and interest paid, increased 19.8 per cent on a year-on-year basis to Rs 8,903 crore for the second quarter of the financial year, according to a regulatory filing. Its gross advances expanded 12.1 per cent to Rs 9,23,966 crore compared with the year-ago period.

The PSU lender's net interest margin, a key measure of profitability, stood at 3.02 per cent for the quarter under review, as against 3.05 per cent for the previous three months. 

Its asset quality improved as reflected in a fall in non-performing assets, or bad loans, as a percentage of total loans. Its gross bad loans (GNPAs) for the September quarter stood at 4.76 per cent of its total loans, as against 5.15 per cent for the previous three months, while net bad loans (NNPAs) improved to 1.41 per cent from 1.57 per cent, according to the filing. 

The lender said its provisions decreased 19.8 per cent on a year-on-year basis to Rs 2,201 crore for the fiscal second quarter.

Its global business grew 10.1 per cent on year to Rs 21,56,181 crore, the lender added.

Canara Bank shares recovered their intraday losses after the earnings announcement, finishing the day stronger by Rs 6.3, or 1.8 per cent, at Rs 359.9 apiece on BSE.

The state-run lender's shares grew 24.7 per cent in the September quarter, sharply outperforming a 2.4 per cent rise in the headline Nifty50 index as well as a 0.4 per cent decline in the high-beta Nifty Bank gauge. 

Catch the latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.