Canara Bank shares tanked by nearly 18 per cent on Monday despite reporting a 65 per cent jump in its standalone net profit for the quarter ended March 2022.
Indeed, shares of Canara Bank slumped 17.75 per cent to Rs 201.45 on the BSE on Monday after falling 4.72 per cent to Rs 214.05 in the previous session.
On Friday, the Bengaluru-headquartered bank reported a healthy net profit of Rs 1,666.22 crore for the quarter ended March 2022, compared to Rs 1,010.87 crore in the same quarter a year ago.
Total income of the bank in the January-March period of 2021-22 rose to Rs 22,323.11 crore, from Rs 21,040.63 crore in the same period of 2020-21, Canara Bank said in a regulatory filing.
On the asset quality front, the bank’s gross non-performing assets (NPAs) or bad loans fell to 7.51 per cent of the gross advances at the end of March 2022, as against 8.93 per cent at the end of March 2021.
In value terms, the gross NPAs were worth Rs 55,651.58 crore, down from Rs 60,287.84 crore.
Net NPAs were also better at 2.65 per cent (Rs 18,668.02 crore) in the quarter under review, from 3.82 per cent (Rs 24,442.07 crore).
The lender said that the bank’s board had recommended a dividend of Rs 6.50 per equity share for 2021-22. It is subject to shareholders’ approval at the bank’s ensuing annual general meeting.