Canara Bank swung to profit on March quarter as it lowered provisions for bad loans and contingencies but its asset quality deteriorated further. The Bengaluru-based bank reported net profit of  1,010.87 crores in the quarter ended March 2021 compared with a loss of  3,259.33 crores during the same quarter last year.

Its net interest income or the difference between interest earned and interest expended jumped 68 percent to ₹ 5,589 crores compared with ₹ 3,318.52 crores.

The bank's asset quality deteriorated in March quarter as its gross non-performing assets as a percentage of total advances came in at 8.93 percent compared with 7.46 percent in the previous quarter. Gross NPAs stood at ₹ 60,287.84 crore. Its net NPAs came in at 3.82 percent versus 2.64 percent in the December quarter.

Canara Bank's provisions for bad loans fell to ₹ 4,427.53 crore as against ₹ 4,875.28 crores during the same quarter last year.

Canara Bank shares fell as much as 1.88 percent to hit an intraday low of ₹ 150.70, after the earnings announcement, underperforming the Sensex which was up 1.35 percent.