Canara Bank net profit up 8.4%, treasury losses weigh

Canara Bank reported an 8.4% year-on-year rise in net profit to ₹5,175 crore.

The state-owned lender's net interest margin for the quarter improved to 2.6% from 2.5% in the preceding quarter. Its net interest income, or the core earnings from lending, jumped 20.4% at ₹11,005 crore, while an 18% fall in non-interest income at ₹5,772 crore on account of a sharp drop in treasury losses capped the earnings gain.

Total income for the quarter rose 6% year-on-year at ₹40,931 crore. The bank reported a ₹499 crore of total treasury income in the second quarter, reflecting a 68.5% year-on-year fall.

The bank's operating profit stood 2% higher at ₹8,758 crore. Its gross non-performing assets (GNPA) ratio improved to 1.3% at the end of September, reduced from 1.6% three months back and 2.4% a year prior. This helped in lower provisions at ₹1,782 crore against ₹2,354 crore in the year ago period.

Canara's global deposits increased by 13.1% year-on-year to ₹17 lakh crore at the end of September, buoyed by a $5.8 billion inflows in the foreign currency non-resident-bank (FCNR-B) accounts through the Reserve Bank of India's dedicated window. The overseas inflows translated into ₹53,000 crore in rupee terms.