Canara Bank reported Q4 loss of Rs.4,860 crore against the Rs.214 crore profit it posted in the same period last year.
The bank’s total income reduced by 10.34 % at Rs.11,555 crore against the Rs.12,889 crore recorded last year.
The bank had not opted for the RBI dispensation for staggering the NPA provisioning. It has front-loaded the NPA recognition, and the consequent higher provisioning has consumed its operating profit.
The provisioning on account of NPAs increased to Rs.13,770 crore during 2017-18 from Rs.7,792 crore in the previous year. Rakesh Sharma, Managing Director and CEO, Canara Bank, stated that with stress almost recognised fully, the bank is poised for a stable and profitable growth during the current year.
To actualise this, the bank is working on reorienting and strengthening the balance sheet by augmenting retail business, digitalisation and transformation.