Canara Bank, a leading financial conglomerate in India, reported a lower net profit for the second-quarter, despite higher net interest and non-interest income.
The Bangalore-based bank posted a second-quarter net profit of Rs.710.51 crore or Rs.16.04 per share, compared with Rs.875.56 crore or Rs.19.76 per share reported for the same period last year, reflecting a 19 percent fall.
Net interest income during the quarter stood at Rs.1,988.03 crore, higher by four percent than last year's Rs.1,918.55 crore, while non-interest income rose by 11 percent to Rs.845.81 crore from Rs.762.37 crore for the same period last year.
During the quarter, total income increased by ten percent to Rs.9,390.29 crore from the Rs.8,574.45 crore in the prior-year quarter.
Geographical Segment Revenue
Income from domestic operations for the quarter was Rs.9,244.49 crore, while that from foreign operations stood at Rs.145.80 crore.
Operating profit, before provisions and contingencies, for the quarter totaled Rs.1,516.41 crore, compared with Rs.1,560.04 crore in the prior-year quarter, reflecting a three percent drop.
For the nine months, the bank reported a net profit of Rs.2,146.72 crore, compared with Rs.2,453.63 crore for the comparable period in 2011, reflecting a 13 percent decline.
For the nine-month period, net interest income grew by two percent to Rs.5,788.38 crore from the Rs.5,649.15 crore in the corresponding period last year. Non-interest income during the period amounted to Rs.2,146.49 crore, flat from last year's Rs.2,136.18 crore.
Total income for April-December period was Rs.27,759.37 crore, an increase of 12 percent from the Rs.24,719.31 crore in the corresponding period of last year.
Gross non-performing assets as a proportion of gross customer assets stood at 2.77 percent, up from 1.81 percent at the end of December 2011, while net non-performing assets as a proportion of net customer assets were at 2.35 percent as at the end of December 2012, an increase from 1.49 percent over the year.
The bank's capital adequacy ratio fell to 12.64 percent from the 13.22 percent as on December 31, 2011.
Its total deposit as at the end of September this year rose by three percent to Rs.323,963 crore from the Rs.314,093 crore on December, 2011, while net advances totaled Rs.218,242 crore, flat from last year's Rs.217,637 crore.
At the BSE, Canara Bank shares are currently trading at Rs.450.85, down Rs.9.30 or 2.02 percent on a volume of around 441,000 shares.
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