Canara Bank Swings To Profit In March Quarter; Asset Quality Deteriorates

Canara Bank's provisions for bad loans fell to Rs 4,427.53 crore as against Rs 4,875.28 crore during the same quarter last year.

Canara Bank swung to profit on March quarter as it lowered provisions for bad loans and contingencies but its asset quality deteriorated further. The Bengaluru-based bank reported net profit of Rs 1,010.87 crore in quarter ended March 2021 compared with loss of Rs 3,259.33 crore during the same quarter last year. Its net interest income or the difference between interest earned and interest expended jumped 68 per cent to Rs 5,589 crore compared with Rs 3,318.52 crore. The bank's asset quality deteriorated in March quarter as its gross non-performing assets as a percentage of total advances came in at 8.93 per cent compared with 7.46 per cent in the previous quarter. Gross NPAs stood at Rs 60,287.84 crore. Its net NPAs came in at 3.82 per cent versus 2.64 per cent in December quarter.