Canara Bank in the red

Canara Bank posted a set of dismal numbers for Q4FY20. Its net loss of the quarter widened to Rs.3259 crore, up from the loss of Rs.551 crore loss it had posted in previous Q4.

NII rose 5% (YoY) at Rs.3318 crore while non-NII rose 17% at Rs.2175 crore.

The Bank made a huge provisioning of Rs.5375 crore for the quarter but this still lower than the Rs.5523 crore provisioned in previous Q4.

On the Covid impact, the Banks said that it has provided Rs.94 crore for loans worth Rs 1,883 crore to whom regulatory asset qualification benefit has been extended.

The provision coverage ratio (PCR) of bank improved to 75.86% for Q4FY20 v/s 66.13% (YoY) and it expects it to improve by 2-3% in FY21.

In terms of asset quality, Gross NPA declined from 8.36% to 8.21% and Net NPA from 5.05% to 4.22%.

The amalgamation of Syndicate Bank into Canara Bank came into effect on April 1, 2020.

The market is pretty shaken up by its huge loss of the Bank and it figures intermittently among the top five losers on the BSE since opening bell.

The stock, which had closed yesterday at Rs.109.45, opened weaker at Rs.103 and went down to Rs.102.05. It is currently trading at Rs.104 levels.