Canara Bank posted its Q1FY22 earnings, which came in above estimates. The state-run bank reported a nearly three-fold jump in its net profit to Rs 1,177 crore in the quarter ended in June, 2021. The bank had reported a profit after tax of Rs 406 crore in the year-ago quarter. Its net interest income rose to Rs 6,147 crore in April-June, from Rs 6,096 crore in the same quarter of the previous fiscal.

The bank's non-interest income grew by 67.47 percent to Rs 4,438 crore in the reporting quarter compared to Rs 2,650 crore last year. Net interest margin (NIM) declined to 2.71 percent in the quarter from 2.84 percent in the year-ago quarter. LV Prabhakar, MD and CEO, Canara Bank, discussed the performance with CNBC-TV18.

“Every quarter we have strengthened the balance sheet. Margins will be sustained, going forward; and the growth is steady in terms of operating profits, net profits and business. So, we are confident that we are going to sustain these margins and get back to over 3 percent,” he said.

The bank’s total restructured book is at Rs 18,320 crore which forms 2.68 percent of its book.

“This restructure is entirely different from the earlier restructure. Since the shops are shut and cashflow is not there, it is a genuine requirement of the borrower to demand a restructuring and RBI has given this facility. We have provided the restructuring to the tune of about Rs 13,000 crore,” he shared.

Out of the total moratorium, 23 percent people have availed moratorium. “About 77 percent people have paid back. Our asset quality is very good and it is only a temporary phenomenon as far as Canara Bank is concerned. Current month we are seeing good traction,” he stated.

In terms of loan growth, he mentioned, “We will be growing at 7.5 percent minimum but we may touch double-digit also.”

(With inputs from PTI)

For the full interview, watch the accompanying video.

(Edited by : Dipika Ghosh)