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Canara Bank's fiscal Q1 net profit drops 52.2% YOY

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Canara Bank's fiscal Q1 net profit drops 52.2% YOY

posted a 52.2%year-over-year decline in net profit for the first quarter ended June 30, asnonperforming assets continue to pile up.

Thebank's net profit dropped to 2.29 billion rupees from 4.79 billion rupees inthe year-ago period. EPS fell to 4.22 rupees from 9.63 rupees.

Provisionsand contingencies climbed to 14.93 billion rupees from 13.60 billion rupees,with coverage ratio at 50.82% as of the end of June 30. The bank's grossnonperforming assets jumped to 323.34 billion rupees from 130.81 billion rupeesin the prior-year period, while its net NPA surged to 214.93 billion rupeesfrom 88.88 billion rupees.

Thegross NPA ratio worsened to 9.71% at the end of the quarter from 3.98% in theyear-ago period and from 9.40% in the quarter ended March 31. The net NPA ratiorose to 6.69% from 2.74% in the prior-year period and from 6.42% at the end ofMarch.

Meanwhile,the bank's total income dropped to 117.86 billion rupees from 122.53 billionrupees in the prior-year period. Operating profit before provisions andcontingencies fell to 18.19 billion rupees from 20.04 billion rupees.

UnderBasel III, the bank's capital adequacy ratio increased to 12.11% from 10.75% inthe year-ago period. The capital adequacy ratio in the quarter ended March was11.08%.

As of July 22, US$1 wasequivalent to 67.15 Indian rupees.