Canara Bank

The Bank declared its Q1FY18 numbers after market hours and they were not very encouraging. Though profit increased, the higher provisioning and fall in asset quality will weigh heavy.

Thanks to the 18% (YoY) increase in NII at Rs.2713 crore and 33% rise in non-interest income at Rs.2108 crore, the Bank posted a 10% rise in net profit at Rs.252 crore.

In terms of asset quality, Gross NPA rose 93bps from 9.63% to 10.56% and Net NPA went up 76 bps points sequentially to 7.09% from 6.33%.

Provisions for bad loans rose 48% (YoY) but fell 19% sequentially to Rs.2204 crore. Its provision coverage ratio improved to 54.52% v/s 52.5% (QoQ).

Capital adequacy ratio improved 50 bps to 12.61%