Canara Bank Q1 Results: Net Profit jumps 10.5% to ₹3,905 crore; NII up 6%

Canara Bank Q1 results: The lender's standalone net profit increased by 10.5 percent year-on-year (YoY) to ₹3,905 crore in the quarter ended June 2024 (Q1FY25), aligning with analyst expectations. This compares to a net profit of ₹3,535 crore in the same period last year. Additionally, net interest income (NII) rose by 6 percent YoY to ₹9,166 crore in the quarter under review, up from ₹8,666 crore in the previous year.

However, Net interest margins for the bank witnessed a decline, falling to 2.9 percent in the June 2024 quarter from 3.05 percent in both the same period last year and the preceding March quarter.

Canara Bank's asset quality improved in the June quarter. Gross NPAs decreased to 4.14 percent in the first quarter, compared to 5.15 percent in the same quarter last year and 4.23 percent in the March 2024 quarter. Net NPAs also declined to 1.24 percent in the reporting period, from 1.27 percent in March and 1.57 percent a year ago.

Moreover, the lender's operating profit before provisions and contingencies remained largely unchanged at ₹7,616 crore for the June quarter, slightly up from ₹7,606 crore in the same period last year. Provisions for the quarter, meanwhile, decreased by 16 percent year-on-year to ₹2,282 crore, with provisions for non-performing assets (NPAs) dropping by 10 percent YoY.

Non-interest income for the first quarter also increased by 10 percent YoY to ₹5,319 crore, compared to ₹4,819 crore in the corresponding quarter of the previous year.