Canara Bank on Friday reported a net loss of Rs 3,905 crore in the March quarter on account of sharp rise in provisioning for bad loans. State-run Canara Bank had to set aside Rs 6,332 crore as loan loss provision after bad loans jumped to Rs 31,638 crore in the March quarter.
Bangalore-based Canara Bank's gross non-performing assets now account for 9.4 per cent of its total advances. That number stood at 5.84 per cent in the December quarter.
Canara Bank's loss could have been much higher, but for the Rs 780 crore tax credit the lender booked in the March quarter.
Canara Bank joined a long list of state-run lenders that have reported huge losses in the March quarter. So far, 12 state-run banks have posted combined losses of over Rs 20,500 crore in Q4 due to a surge in provisions for bad debt after a clean-up ordered by their regulator, Reserve Bank of India.
Canara Bank shares ended 3.4 per cent lower at Rs 192.65 after falling as much as 7 per cent post earnings announcement. The stock unperformed the broader Nifty that closed with over 1 per cent gains.
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