Saturday, May 12, 2018

NPA PROVISIONS UP THREE-FOLD

Canara Bank’s Q4 loss at ₹4.8k crore on bad loans

New Delhi: 12.05.2018

State-owned Canara Bank on Friday reported a net loss of ₹4,859.7 crore for the last quarter of 2017-18 due to increased provisioning for bad loans. The bank had clocked a net profit of ₹214.2 crore in the corresponding January-March quarter of preceding fiscal 2016-17.

The bank raised its provisioning for non-performing assets (NPAs) to ₹8,762 crore during the January-March quarter, up by nearly 200% from ₹2,924 crore in the same period of previous fiscal, as bad assets ballooned, according to a regulatory filing by the bank. For whole 2017-18, the bank suffered a net loss of ₹4,222 crore .

Total income of the bank during the quarter ended March 2018 fell to ₹11,555.1crore

from ₹12,889.2 crore.

In full year 2017-18, total income stood at ₹48,194.9 crore against ₹48,942 crore in preceding year, the bank said. Assetwise, there was fall in quality as gross non-performing assets (NPAs) rose to 11.8% of gross advances by the end of March 2018 from 9.6% by end-March 2017.

In absolute value, the gross NPAs were at ₹47,468 crore from ₹34,202crore.

Net NPA ratio stood at 7.5% (₹28,542.40 crore) from 6.33% (₹21,648.9 crore). The NPA provisioning for the full year rose to ₹14,882 crore from ₹7,437 crore in 2016-17. In view of fraud reported during the year in certain banks in respect of one gems and jewellery borrower group accounts , the bank has classified these accounts as non-performing asset and provided fully, Canara Bank said. AGENCIES

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