Home Market Canara Bank rallies 6% even as NPAs swell

Canara Bank rallies 6% even as NPAs swell

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NEW DELHI: Canara Bank jumped 6 per cent on Thursday after the lender's profit grew despite a spurt in bad loans.

It reported an 11.87 per cent rise in its net profit at Rs 281.49 crore for the June quarter even as non-performing assets went up.

The state-owned bank had registered a net profit of Rs 251.60 crore in the same quarter last year.

The stock rose 5.71 per cent to hit a high of Rs 272.40 on the BSE.

Total income was up at Rs 13,192.46 crore for the June quarter, from Rs 12,304.10 crore in the same period a year ago.

Interest income too increased to Rs 11,359.55 crore, from 10,195.59 crore a year earlier, Canara Bank said in a regulatory filing.

The bank's income from other sources, however, slipped to Rs 1,832.91 crore, from the earlier Rs 2,108.51 crore.

Worryingly, gross non-performing assets (NPAs) for the lender jumped to 11.05 per cent of gross advances at the end of June quarter, from 10.56 per cent a year earlier. Net NPAs came down to 6.91 per cent, from 7.09 per cent before.

In absolute value, gross NPAs at the end of June 2018 stood at Rs 44,659.56 crore, from Rs 37,657.76 crore as on June 30, 2017. Net NPAs were Rs 26,693.50 crore compared with Rs 24,300.63 crore earlier.

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