Syndicate Bank was merged with Canara Bank from April 1, 2020.
There was a net loss of Rs 6,567 crore in the March 2020 quarter on a standalone basis.
Canara Bank has reported a net profit of Rs 1,010 crore for the quarter ended March 2021 on a standalone basis. Profit of the bank has improved due to increase in net interest income and reduction in the provision of losses for loans stuck in realization. Syndicate Bank was merged with Canara Bank from April 1, 2020. After the merger, the bank incurred a net loss of Rs 6,567 crore on a single basis in the March 2020 quarter.
According to regulatory information, before the merger, the bank had a net loss of Rs 3,259.33 crore on a single basis in the same quarter of 2019-20. The consolidated net profit for the March 2021 quarter stood at Rs 1,195.78 crore as compared to a net loss of Rs 3,209.98 crore in the March 2020 quarter. Canara Bank stated that the single-based and unified figures for the March 2020 quarter relate to the pre-merger finance of the bank and therefore cannot be compared to the quarter ended March 2021 after the merger.
Trying to strengthen the balance sheet
Bank managing director and CEO LV Prabhakar told reporters, “We tried to strengthen the ledger account by creating aggressive provisions and at the same time we made sure that all necessary measures were taken when needed.”
Provisioning 4428 crores in the March quarter.
The bank’s net interest income in the March 2021 quarter increased from Rs 5,087 crore in March 2020 to Rs 5,589 crore. The Net Interest Difference (NIM) stood at 2.75 percent as compared to 2.51 percent in March 2020. The provision made by the bank for its non-performing assets (NPAs), ie blocked loans, was reduced to Rs 4,428 crore as compared to Rs 7,939 crore in the March quarter of the financial year 2019-20.
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