Mumbai: The Bengaluru-based Canara Bank reported a 190% jump in its net profit to Rs 1,177 crore in the first quarter ended June, owing to an increase in non-interest income and a decrease in provisions for bad loans.
During the same quarter last year, the public sector lender earned a net profit of Rs 406 crore (Q1FY21), when it had amalgamated Syndicate Bank into itself with effect from April 1, 2020.
ALSO READ | Vijay Mallya Declared Bankrupt By UK Court; Indian Banks Inch Closer To Debt Recovery
Bank's total income in the June quarter increased marginally to Rs 21,210.06 crore, from Rs 20,685.91 crore in the year-ago period, Canara Bank said in a regulatory filing.
The bank has taken the one-time settlement (OTS) route to recover small-value unsecured loans during the April-June quarter of FY22. During the quarter, it settled 89,000 loan accounts with a total outstanding of Rs 1,950 crore through OTS deals to recover Rs 1,300 crore, said LV Prabhakar, MD & CEO, Canara Bank.
Bank's Net interest income (NII) increased by 0.84% during the quarter to Rs 6,147 crore from Rs 6,096 crore in the year-ago period, while non-interest income increased by 67.47% to Rs 4,438 crore from Rs 2,650 crore in Q1FY21.
The bank said it plans to raise Rs 9,000 crore through a mix of debt and equity to enhance its capital base to fund its business growth during the current fiscal.
ALSO READ | Amazon India May Buy A Stake In Inox, Other Deals Also Being Evaluated - Check Details
The bank had 9877 branches, out of which 3047 are rural, 2853 semiUrban, 1973 urban and 2004 in metros, and 11819 ATMs.
Canara Bank is among the eight public sector banks that have come on board to lead the first round of capital infusion into National Asset Reconstruction Co. Ltd (NARCL) or the so-called 'bad banks).
Canara Bank's shares closed up 1.47% at Rs 148.8 in a weak Mumbai market on Tuesday, valuing the lender at Rs 24,504 crore.