State-owned
Canara Bank on Friday said its net loss narrowed multi-fold to Rs 551.53 crore
for the fourth quarter of fiscal 2018-19, mainly driven by lower provisioning
for bad loans.
The bank
had posted a net loss of Rs 4,859.77 crore during the corresponding
January-March period of the preceding fiscal. Total income of the bank during
the March quarter rose to Rs 14,000.43 crore, compared to Rs 11,555.11 crore in
the year-ago period, Canara Bank said in a regulatory filing. For the full
2018-19 fiscal, the bank has posted a net profit of Rs 347.02 crore. There was
a net loss of Rs 4,222.24 crore in 2017-18.
Total
income during the fiscal was higher at Rs 53,385.30 crore as against Rs
48,194.94 crore a year earlier. The Bengaluru-headquartered lender witnessed
improvement in the asset quality with the gross non-performing assets (NPAs)
falling to 8.83 per cent of gross advances at March-end 2019 compared to 11.84
per cent a year earlier. Net NPAs or bad loans stood at 5.37 per cent, compared
with 7.48 per cent year ago.
In
absolute-value, the gross NPAs were Rs 39,224.12 crore at March-end 2019, as
against Rs 47,468.47 crore a year earlier. Likewise, the net NPAs stood at Rs
22,955.11 crore in the quarter under review, compared to Rs 28,542.40 crore.
There was also a reduction in provisioning requirement to the tune of Rs
5,120.85 crore in March quarter FY2019 as against Rs 8,762.57 crore parked
aside in the year-ago period.
The overall
provisioning and contingencies stood at Rs 5,523.50 crore, less than Rs
9,075.04 crore a year ago. Canara Bank said, as per the RBI directive, it
restructured as many as 41,602 MSME account as on March 31, 2019 with amount
involving Rs 753.51 crore as a relief to them under Goods and Services Tax
(GST).
During
the quarter ended March 31, 2019, six fraud accounts were detected, amounting
of Rs 704.06 crore, wherein the bank is required to provide Rs 429.87 crore, in
addition to the provision of Rs 274.19 crore already provided up to December
2018, it said. “The total amount provided during the quarter is Rs 107.47
crore, representing 25 per cent of the provision to be made. Further, the
remaining unamortised provision amount is debited to other reserves, which will
be amortised during first three quarters of next financial year,” it added.
During
the March quarter, the bank allotted 2 crores equity shares at Rs 186 each
under Employee Share Purchase Scheme, the lender said. Provision coverage ratio
as on March 31, 2019 stood at 68.13 per cent, as against 58.06 per cent a year
ago.
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