Canara Bank, a leading financial conglomerate in India, reported a lower net profit for the second-quarter, impacted by higher interest expenses and lower non-interest income.
The Bangalore-based bank posted a second-quarter net profit of Rs.660.97 crore or Rs.14.92 per share, compared with Rs.852.22 crore or Rs.19.24 per share reported for the same period last year, reflecting a 22 percent fall.
Net interest income during the quarter stood at Rs.1,956.80 crore, flat from last year's Rs.1,961.69 crore, while non-interest income for the quarter fell by 26 percent to Rs.608.07 crore from Rs.822.80 crore for the same period last year.
During the quarter, total income increased by nine percent to Rs.9,203.61 crore from the Rs.8,437.27 crore in the prior-year quarter.
Geographical Segment Revenue
Income from domestic operations for the quarter was Rs.9,062.25 crore, while that from foreign operations stood at Rs.141.36 crore.
Operating profit, before provisions and contingencies, for the quarter totaled Rs.1,282.09 crore, compared with Rs.1,599.87 crore in the prior-year quarter.
For the first six months, the bank reported a net profit of Rs.1,436.21 crore, compared with Rs.1,578.07 crore for the comparable period in 2011, reflecting a nine percent decline.
For the six-month period, net interest income grew by one percent to Rs.3,800.34 crore from the Rs.3,730.59 crore in the corresponding period last year. Non-interest income during the period amounted to Rs.1,300.68 crore, down by five percent from the Rs.1,373.82 crore for the six-month period ended September 2011.
Total income for April-September period was Rs.18,369.08 crore, an increase of 14 percent from the Rs.16,144.86 crore in the corresponding period of last year.
Gross non-performing assets as a proportion of gross customer assets stood at 2.58 percent, up from 1.75 percent at the end of September 2011, while net non-performing assets as a proportion of net customer assets were at 2.12 percent as at the end of September 2012, an increase from 1.42 percent over the year.
The bank's capital adequacy ratio increased to 13.07 percent from 12.78 percent as on September 30, 2011.
Its total deposit as at the end of September this year rose by eight percent to Rs.336,762 crore from Rs.311,858 crore on September 30 last year, while net advances totaled Rs.215,751 crore, flat from last year's Rs.216,085 crore.
At the BSE, Canara Bank shares are currently trading at Rs.416, down Rs.2.30 or 0.55 percent on a volume of 480,000 shares.
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