Canara Bank Q1FY16 performance disappointed on all counts – lower profitability, poor asset quality and increased provisioning too. Overall it was a poor set of numbers – net profit was down 41% (YoY) at Rs.479 crore. NII was marginally better, up 4% (YoY) at Rs.2517 crore  and other income rose 8% at Rs.1113 crore.

During the quarter provisioning for bad loans jumped up 72% (YoY) and up 35% QoQ at Rs.1360 crore. In terms of asset quality,Gross NPA was at 3.98%, up by 9 bps (QoQ) and Net NPA also showed a 9 bps rise at 2.74%.The fall was not as bad as expected in the NPAs and that is probably what reassured the markets and the stock, despite the poor numbers, is up in the green today.