Canara Bank, a state-owned bank, posted a standalone profit of Rs 1,010.87 crore for the fourth quarter ended March 2021, owing to lower provision for bad loans.
During the January-March 2020 quarter, the bank reported a net loss of Rs 3,259.33 crore.
Canara Bank stated in a regulatory filing that its standalone income increased to Rs 21,522.60 crore in January-March from Rs 14,222.39 crore the previous year.
The bank’s provision for non-performing assets (NPAs) fell to Rs 4,427.53 crore in the March 2021 quarter, down from Rs 4,875.28 crore in the previous year’s quarter.
There was a profit of Rs 2,557.58 crore in 2020-21, compared to a loss of Rs 2,235.72 crore in 2019-20.
In terms of asset quality, gross nonperforming assets (NPAs) remained excessive at 8.93% at the end of March 2021, slightly higher than 8.21% at the end of March 2020.
The bank’s gross nonperforming assets (NPAs) or bad loans increased to Rs 60,287.84 crore as of March 31, 2020, up from Rs 37,041.15 crore the previous year.
However, net nonperforming assets (NPAs) were reduced from 4.22 percent to 3.82 percent (Rs 24,442.07 crore) (Rs 18,250.95 crore).
It should be mentioned that on April 1, 2020, Syndicate Bank and Canara Bank merged to form Canara Bank.
“Figures for the quarter ended March 31, 2020, and the year ended March 31, 2020, are based on standalone Canara Bank financials from before the merger, and hence are not comparable to post-merger financials for the quarter ended March 31, 2021, and the year ended March 31, 2021,” it stated.
It stated the provision coverage ratio as of March 31, 2021 was 79.68 percent, up from 75.86 percent a year ago.
As of March 2021, the bank’s capital adequacy ratio was 13.18 percent. Tier-I accounts for 10.08 percent of the total, while Tier-II accounts for 3.10 percent, according to the report.
