Canara Bank posts 10% rise in net profit to Rs 3,905 cr in Q1, asset quality improves

Bengaluru, 25 July: Public sector lender, Canara Bank on Thursday posted a net profit of Rs 3,905 crore in the first quarter of ongoing financial year, an increase of 10 per cent from a year ago period.

Net interest income (NII) during this period increased 6 per cent year-on-year (YoY) basis to Rs 9,166 crore as compared to Rs 8,666 crore reported in the same period of last fiscal.

While operating profit remained flat at Rs 7,616 crore in the June quarter, provisions during the first quarter fell 16 per cent to Rs 2,282 crore. Provisions for the non-performing assets declined 10 per cent year-on-year basis.

Meanwhile, the Bengaluru-headquartered public lender reported a decline in its net interest margins (NIM). NIM during the first quarter declined to 2.9 per cent from 3.05% reported a year ago.

The commercial bank saw improvement in its asset quality as its gross NPA (non-performing assets) and net NPA declined during this period. Gross non-performing assets (NPAs) fell to 4.14 per cent in the first quarter, compared with 5.15 per cent reported in the same period of last year. Net NPAs too declined to 1.24 per cent in the reporting period against 1.57 per cent reported in the year-ago quarter.

The capital adequacy ratio stood at 16.38 per cent at the end of the June quarter, out of which Tier-I capital was at 14.37 per cent. Meanwhile, the provision coverage ratio (PCR) was at 89.22 per cent as of June 2024, as compared to 88.04 per cent reported a year ago period.

The advances of the bank grew 9 per cent year-on-year basis to Rs 9.2 lakh crore, while its deposits saw a growth of 11 per cent during this period.

###