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Chennai, NFAPost: Public sector lender Canara Bank has posted 23.4% increase in net profit at Rs 406.24 crore for the quarter ended June 30, 2020, compared to Rs 329.07 crore in the corresponding quarter of the last year.

However, the bank mentioned that figures are related to standalone Canara Bank financials for pre-amalgamation period, hence not comparable with post amalgamation financial for the quarter ended June 30, 2020.

Canara Bank amalgamated Syndicate Bank into itself effective from April 1, 2020.

The public sector lender’s total income for the first quarter of this financial year stood at Rs 20,685.91 crore, an increase of 47.1% from Rs 14,062.39 crore in the year-ago period. Gross NPA ratio was at 8.84%, down by 144 bps (yoy) while Net NPA ratio at 3.95%, down by 192 bps (yoy) as on June 30, 2020.

Its Provision Coverage Ratio (PCR) improved significantly by 1020 bps from 68.75% as on June 30, 2019 to 78.95% as on June 30, 2020. Its Non-Interest Income increased by 10.51% (yoy) to Rs 2,650 crore in the first quarter of this financial year and its Net-Interest Income (NII) grew by 21.11% (yoy) to Rs 6,096 crore.


  • Global Business increased by 4.01% (yoy) to Rs 15,60,144 Cr as on June 30, 2020 with Global Deposits at Rs 9,09,570 Cr (4.56% yoy) and Global Advance (gross) at Rs 650574 Cr (3.25% yoy)
  •  Domestic Deposit of the Bank stood at Rs 8,69,635 Cr with growth of 7.66% (yoy)
  •  Domestic Advances (gross) of the Bank stood at Rs 6,24,172 Cr with growth of 4.72% (yoy)
  •  Retail lending Portfolio increased 2.95% (yoy) to Rs 1,12,079 Cr
  •  Housing Loan Portfolio increased 10.06% yoy to Rs 58,243 Cr
  • Vehicle Loan portfolio stood at Rs 12,508 Cr as on June 30, 2020
  • As on June 30, 2020, the Bank has 10,451 number of Branches, 3,079 Rural , 3,175  Semi- Urban, 2,073 Urban & 2,124 Metro along with 13,401 ATMs

The bank in a regulatory filing said, “Covid-19 Pandemic continues to spread across several countries including India resulting in a significant volatility in Global as well as Indian financial markets and a significant decline in global & local economic activities. The Government of India has announced a series of lock down measures from March 24, 2020 onwards which have been extended from time to time up to June 30, 2020.”

It added that the Centre has directed a calibrated and gradual withdrawal of lockdown and partial resumption of economic activities. The situation continues to be uncertain and the bank is evaluating the situation on ongoing basis.

The major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles. Despite the challenges the management believes that no adjustments are required in the financial results as it does not significantly impact the current quarter. Despite these events and conditions, there would not be any significant impact on bank’s results in future and going concern assumptions as at presently made, it further said.

Canara Bank shares were trading at Rs 102.05, down 1.07% on Thursday afternoon.

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