BackCanara Bank Q1 results: Net profit jumps 75% YoY to ₹3,534.8 crore; asset quality improves
Canara Bank's net interest income (NII), which is the difference between interest earned and interest expended, in Q1FY24 increased 27.7% to ₹8,665.7 crore as compared to ₹6,784.7 crore, YoY.
PremiumCanara Bank reported a net profit of ₹3,534.8 crore for the quarter ended June 2023, witnessing a sharp 74.8% jump from ₹2,022 crore in the same quarter last year.
The public sector lender’s net interest income (NII), which is the difference between interest earned and interest expended, in Q1FY24 increased 27.7% to ₹8,665.7 crore as compared to ₹6,784.7 crore, YoY.
Net Interest Margin (NIM) during the quarter under review was at 3.05% as against 3.07% in the previous quarter.
Canara Bank’s Pre-provision Operating Profit (PPOP) rose to ₹7,604.02 crore from ₹6,606.23 crore, YoY.
Credit cost declined to 1.10% from 1.17%, QoQ, and 1.38%, YoY.
The bank's provisions for the quarter declined to ₹2,718.93 crore from ₹3,094.95 crore, QoQ, and ₹3,690.05 crore, YoY.
Asset quality of the bank improved in the first quarter of FY24. Its Gross Non-Performing Assets (NPA) ratio during the June quarter declined by 20 basis points (bps) to 5.15% from 5.35% in the March quarter. Net NPA ratio fell 16 bps to 1.57% from 1.73%, sequentially.
On absolute basis, Canara Bank’s Gross NPA in Q1FY24 eased 0.9% to ₹45,727.4 crore from ₹46,159.5 crore, QoQ, while Net NPA fell 6.2% to ₹13,461.4 crore from ₹14,349.3 crore, QoQ.
Slippages during the quarter ended June 2023 increased to ₹3,428 crore from ₹2,973 crore, sequentially.
Provision Coverage Ratio (PCR) was at 88.04% as against 88.31% QoQ. Capital Adequacy Ratio in Q1FY24 was at 16.24% as against 16.68% , QoQ, and against 14.91%, YoY.
The state-run lender's total domestic deposit at the end of March 2023 increased 4.9% to ₹11,04,506 crore from ₹10,52,907 crore, YoY. Its global deposits rose 6.5% YoY to ₹11,92,470 crore.
Canara Bank Q1 gross global advances rose 13.27% YoY to ₹8,87,671 crore. Domestic gross advances witnessed a growth of 12.69% YoY to ₹8,43,063 crore.
At 1:35 pm, the shares of Canara Bank were trading 2.94% higher at ₹348.00 apiece on the BSE. The stock hit a 52-week high of ₹351.30 per share after the Q1 results.
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