State-run Canara Bank Ltd reported a surprise 11.9 per cent rise in first-quarter net profit on higher interest income while its bad-loan provisions increased slightly. Net profit was Rs 281 crore ($40.9 million) for the three months ended June 30, compared with Rs 252 crore a year ago, the bank said in a statement. Eight analysts on average had expected a loss of Rs 1,096 crore, according to Thomson Reuters I/B/E/S.
Gross bad loans as a percentage of total loans was 11.05 per cent at end-June, lower than 11.84 percent three months earlier, but still higher than 10.56 per cent a year ago.
The bank reported mark-to-market losses of Rs 151 crore in the quarter as it opted to spread bond losses over four quarters as allowed by the central bank. The remaining losses of Rs 453 crore will be distributed over the next three quarters, Canara Bank said.
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