Canara Bank today reported 18.8 per cent decline in its net profit at Rs 710.51 crore for the quarter ended December 31, 2012 on account of higher provisioning and rise in bad loans.

The state-owned bank had posted net profit of Rs 875.56 crore in the corresponding quarter of the previous fiscal.

Total income of the bank during the third quarter (October-December) of the current fiscal, however, rose to Rs 9,390.29 crore from Rs 8,574.45 crore during the same quarter last fiscal, it said in a filing to the BSE.

The bank made provisioning for bad loans and contingencies of Rs 625.90 crore for the third quarter, up from Rs 484.48 crore in the year-ago period.

Also, the net non-performing assets (NPAs), or bad loans, of the bank rose to 2.35 per cent as of December 31, 2012 from 1.49 per cent as of December 31, 2011.

In value-terms, the net NPAs increased to Rs 5,134.40 crore during the quarter under review from Rs 3,265.42 crore i the year-ago period.

Segment-wise, its revenue from retail banking operations declined marginally to Rs 2,312.87 crore during reported quarter from Rs 2,335.25 crore in the year-ago period.

While, income from wholesale banking operations increased a tad to Rs 4,173.70 crore in the third quarter of FY13 from Rs 4,157.28 crore in the same period of FY12 and from treasury operations the income rose to Rs 2,815.78 crore in the reported period against Rs 2,052.77 crore in previous-year period.

Shares of the bank were trading at Rs 451 apiece on noon trades on the BSE, down 1.99 per cent from the previous close.