Earnings

Canara Bank Q3 net misses Street's estimates, NII falls 10%, asset quality improves sequentially

Updated : January 24, 2020 09:59 AM IST

Net interest income during the quarter ended December 2019 fell 9.9 percent to Rs 3,435 crore from Rs 3,813 crore YoY.

Gross NPA fell 5.3 percent to Rs 36,644.97 crore from Rs 38,711.33 crore while Net NPA decreased to Rs 21,337.74 crore from Rs 22,090.04 crore QoQ.

Canara Bank on Thursday reported a 3.8 percent rise in standalone net profit for the third quarter of financial year 2020 at Rs 329.62 crore compared to Rs 317.52 crore in Q3FY19.

However, the net profit was below CNBC-TV18's Poll of Rs 689.4 crore.Net interest income (NII) during the quarter ended December 2019 fell 9.9 percent to Rs 3,435 crore from Rs 3,813.8 crore YoY.

CNBC-TV18 Poll had an estimated NII of Rs 3,348.2 crore.

Pre-provisions operating profit was reported at Rs 2,334.33 crore as against Rs 2,357.24 crore on year.

Asset quality of the state-run lender improved on a sequential basis as the gross non-performing assets (GNPA) as a percentage of gross advances fell 32 bps to 8.36 percent in the December quarter from 8.68 percent in the September quarter. Net non-performing assets declined 10 bps to 5.05 percent from 5.15 percent QoQ.

Gross NPA fell 5.3 percent to Rs 36,644.97 crore from Rs 38,711.33 crore while Net NPA decreased to Rs 21,337.74 crore from Rs 22,090.04 crore QoQ.

Provision Coverage Ratio as of December 31, 2019, was at 70.97 percent compared to 70.11 percent on September 30, 2019 and 62.54 percent as of December 31, 2018.

During the quarter, the bank reported a recovery of Rs 4,600 crore which includes recovery from NCLT resolution.

Slippages during the quarter rose to Rs 4,800 crore against Rs 2,602 in the previous quarter. The lender's slippages include Dewan Housing Finance Corporation Ltd’s (DHFL) exposure of Rs 2,500 crore (term-loan and investments in bonds).

Capital adequacy ratio in Q3FY20 stood at 13.86 percent as against 13.99 percent QoQ and 12.21 percent YoY.

Canara Bank Q3 net misses Street's estimates, NII falls 10%, asset quality improves sequentially

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