Canara Bank Surges 8pc on Q4 Earnings

Shares of public sector bank Canara Bank rose after the lender reported higher-than-estimated net profit in its fourth quarter.
The public sector lender reported a net profit of Rs. 610.8 crore for the quarter ended March 31, 2014, ahead of analyst estimates of Rs. 497 crore. However, its profit were lower from the same period a year earlier, when it had reported a profit of Rs. 725.3.crore.
Total income of the lender increased to Rs. 11,609.7 crore during the fourth quarter vs Rs. 9,471.5 crore in the same period a year ago.
The bank’s net interest income rose to Rs. 2,535 crore vs Rs. 2,091 crore a year earlier. The net interest income is the difference between interest earned and paid.
The bank saw a decline in its non-performing assets (NPA) as a percentage of total advances. Canara Bank’s net NPA fell to 1.98 per cent in the fourth quarter vs 2.39 per cent in the previous quarter. The gross NPA fell sequentially to 2.49 per cent from 2.79 per cent in the December quarter.
Its board has recommended a final dividend of Rs. 4.5 per shares for the year ended March 31. The bank had declared an interim dividend of Rs. 6.5 per cent shares in January.