Public sector Canara Bankhas reported a 11.87 per cent rise in net profit of Rs 281.49 crore in the first quarter ended June 30, owing to organisational restructuring and realignment of business portfolio.
Making basic changes in business portfolio anddoing organisational restructuring have helped the bank give good results, chief executive officer and managing director of the bank Rakesh Sharma told reporters here today.
The net profit was Rs 251.60 crore in the corresponding April-June period of 2017-18, he said.
In asset quality terms, the gross non-performing assets (NPAs) increased to 11.05 per cent of gross advances at the end of June 2018, as against 10.56 per cent as of June 30, 2017, Sharma said.
Net NPA, however, came down to 6.91 per cent from 7.09 per cent, he said, adding that the NPA would go below six per cent by September.
In absolute value, gross NPAs at the end of June 2018 stood at Rs 44,659.56 crore from Rs 37,657. 76 crore as on June 30, 2017, Sharma said.
Net NPAs were Rs 26,693.50 crore compared to Rs 24,300.63 crore, he added.
Sharma said recovery by the bank has been more than theslippages this quarter.
"We were expecting slippages at around Rs 3000 crore, which is slightly higher than our expectations. Some accounts wereadded in the last minute, but we are hopeful these added accounts would be upgraded in Q2 or Q3," he said.
On recovery, Sharma said out of the Rs 10,000 recovery amount in NCLT first list, as much as Rs 2000 crore has been recovered after the National Company Law Tribunal ruled its verdict in favour of the bank.
In NCLT second list, the total exposure of recovery was Rs 5,000 crore, hence as much as Rs 13,000-crore recovery was still pending after taking into account both the lists, Sharma said.
In yet another account which the NCLT cleared yesterday, there would be recovery of another Rs 500 crore.
By this year-end, I am expecting Rs 15,000 crore to Rs 16,000- crore recovery from various other accounts," he said.
The provisions for bad loans also increased to Rs 2,466.
20 crore for the first quarter up from Rs 2,270 crore parked aside for the same period in 2017-18.
Overall provision and contingencies too increased to Rs 2,582.30 crore as against Rs 2,203.78 crore. Provision coverage ratio as on June 30, 2018 stood at 60.69 per cent.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)