Canara Bank swung to profit on March quarter as it lowered provisions for bad loans and contingencies but its asset quality deteriorated further. The Bengaluru-based bank reported net profit of Rs 1,010.87 crore in quarter ended March 2021 compared with loss of Rs 3,259.33 crore during the same quarter last year.
Its net interest income or the difference between interest earned and interest expended jumped 68 per cent to Rs 5,589 crore compared with Rs 3,318.52 crore.
The bank's asset quality deteriorated in March quarter as its gross non-performing assets as a percentage of total advances came in at 8.93 per cent compared with 7.46 per cent in the previous quarter. Gross NPAs stood at Rs 60,287.84 crore. Its net NPAs came in at 3.82 per cent versus 2.64 per cent in December quarter.
Canara Bank's provisions for bad loans fell to Rs 4,427.53 crore as against Rs 4,875.28 crore during the same quarter last year.
Canara Bank shares fell as much as 1.88 per cent to hit an intraday low of Rs 150.70, after the earnings announcement, underperforming the Sensex which was up 1.35 per cent.