Canara Bank third-quarter profit slumps 61 per cent

Canara Bank Ltd said on Wednesday its third-quarter net profit plunged 61 per cent, missing analysts’ estimates, pulled down by higher provisions for bad loans.

Net profit came in at 1.26 billion rupees ($19.78 million) for the quarter ended December 31, compared with 3.22 billion rupees a year ago, the country's fifth-biggest state-run lender by assets said.

Analysts on average expected the company to post a profit of 2 billion rupees, Thomson Reuters Eikon data showed.

Gross bad loans as a percentage of total loans stood at 10.38 per cent at end-December, compared with 10.51 per cent in the previous quarter, and 9.97 per cent a year ago.

Provisions for bad loans rose about 28 per cent to 19 billion rupees.