Canara Bank net loss Rs.3,905 crore in Q4

Bengaluru: State-run Canara Bank on Friday reported net loss of Rs.3,905 crore for fourth quarter of 2015-16 as against net profit of Rs.613 crore in same period of 2014-15, due to higher provisions for bad loans.

Provisions for quarter under review shot up by a whopping 396 percent to Rs.5,552 crore from Rs.1,120 crore in like period year ago.

The city-based bank’s operating profit also dipped 4.96 percent in Q4 to Rs.1,647 crore from Rs.1,733 crore in like period year ago.

Total income in quarter under review declined 2.5 percent to Rs.12,116 crore from Rs.12,429 crore in same period year ago.

“Net interest income also decreased 4.5 percent to Rs.2,374 crore in Q4 from Rs.2,486 crore in like period year ago,” the bank said in a statement here.

For the fiscal, the bank registered net loss of Rs.2,813 crore as against net profit of Rs.2,703 crore in previous fiscal.

“Provisions for FY 2016 increased 134 percent to Rs.9,959 crore from Rs.4,348 crore in FY 2016,” the statement said.

Operating profit for fiscal 2016, however, grew marginally 2.8 percent to Rs.7,147 crore from Rs.6,950 crore in fiscal 2015, while total income growth was flat (1.2 percent) at Rs.48,897 crore from Rs.48,300 crore year ago.

Net interest income was also flat (1 percent) at Rs.9,763 crore from Rs.9,664 crore last fiscal.

Non-performing assets (NPAs) for Q4 zoomed 652 percent to Rs.5,883 crore from Rs.782 crore in like period year ago, while it shot up 155 percent to Rs.9,608 crore from Rs.3,771 crore.

Gross NPA jumped to Rs.31,638 crore from Rs.13,040 crore, resulting its ratio increasing to 9.4 from 3.89 year ago.

Similarly, net NPA shot up to Rs.20,833 crore from Rs.8,740 crore leading its ratio increasing to 6.42 percent from 2.65 percent.

“Cumulative cash recovery for FY 2016 was 21 percent less at Rs.4,748 crore, including Rs.1,375 crore in Q4 as against Rs.5,993 crore in FY 2015,” the statement added.

IANS