Views on Canara Bank Ltd 1QFY2017 Results: Angel Broking

Views of Mr. Siddharth Purohit (Sr. Equity Research Analyst- Banking, Angel Broking) on Canara Bank 1QFY2017 Results:

Canara Bank's Asset quality stabilizes during the quarter:

"Canara Bank's 1QFY17 results has been mixed bag, while the bank reported 52% YoY decline in PAT, the asset quality remained more or less stable with GNPAs at 9.71% vs 9.40% QoQ and NNPA at 6.69% vs 6.42%. The bank had taken huge provisions of INR 6331cr during Q4FY16, which resulted in a loss of INR 3905cr. During the quarter however provisions remained INR 1492cr, this together with high other income resulted in profit.

Though at the bottom-line level it has turned positive, high other income has supported the PAT. On the operating front the banks performance continues to be disappointing. NII declined by 8.3% while PPP declined by 9.2%. On balance sheet front also it remained disappointing with advanced de growth of 1% and deposits de growth of 1.5% YoY. While the quarter seems to have brought some relief in the asset quality, the NNPA % of 6.69% indicates more provisions going ahead which could keep the bottom-line under pressure. We maintain our NEUTRAL rating on the stock."

Shares of CANARA BANK was last trading in BSE at Rs.251.2 as compared to the previous close of Rs. 258.25. The total number of shares traded during the day was 410475 in over 5279 trades.

The stock hit an intraday high of Rs. 259.5 and intraday low of 250.1. The net turnover during the day was Rs. 103867723.

Source : Equity Bulls

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