Canara Bank surprised the Street with its performance for Q3FY21 with a 82% (YoY) jump in consolidated net profit at Rs.739 but strictly speaking, this is not really comparable YoY as current numbers includes those of Syndicate Bank too, which was amalgamated into Canara Bank, effective 1st April, 2020.
But even on a standalone basis, the jump in net profit was more than double from Rs.330 crore to Rs.696 crore (YoY).
In terms of asset quality, Gross NPA was at 7.48% v/s 8.26% (QoQ) and Net NPA at 2.65% v/s 3.42%.
If not for the Supreme Court order, the bank's gross NPAs and net NPAs would have stood at 8.95% and 3.93% respectively. The worry is that a NPA which is so high, even without the IRAC norms is worrisome.
Provisioning for bad loans and contingencies stood at Rs 4,327 crore v/s Rs.1815 crore (YoY). Of this, the provision for bad loans increased to Rs 2,658 crore from Rs.1,206 crore (YoY).
The market gave the performance a thumbs down, opening over 1% lower at Rs.129, going down further by 5% to Rs.124.60. Its 10% LC for the day is at Rs.118.05.