MUMBAI: Canara Bank BSE -2.94 % has posted net loss of Rs 3,905 crore in the fourth quarter ending March 2016 sine provisions for bad loans rose five times over corresponding period last year. The bank did not declare dividend since for the full year it reported a loss of Rs 3185 crore. Soon after the bank declared losses, shares of Canara Bank dipped 3.5% to trade at Rs 191 at Bombay Stock Exchange
Canara Bank surprised the market with huge losses since in the third quarter the MD & CEO of the bank Rakesh Sharma had told ET that fourth quarter performance would be better than third quarter.
Speaking to ET, after declaring Q3 results, Sharma had said, “Profits for the fourth quarter is likely to be better than the third quarter. We are expecting our margins to improve since we will increase our lending to retail, SME and agriculture sectors.” The bank had reported profit of Rs 85 crore in third quarter.
Bad loans or gross non-performing assets stood at Rs 31637 crore, which 143% rise over FY 15. The bank set aside provisions of Rs 6,331 crore in fourth quarter, up 527%, which has hit their bottomline.
Deposits rose 1.2% to Rs 47,97,91.5 crore while advances dipped 1.6% to Rs 3,24,714 crore.