Canara Bank profit rises 11.9%

Canara Bank’s net profit for the three months ended June rose 11.9% year-on-year (y-o-y) to Rs. 281.49 crore on a revenue of Rs. 1,319.46 crore. Net interest income (NII) grew 43%, the bank said in a statement.

“The NII growth is primarily due to the 15.1% y-o-y growth in domestic credit backed by a whopping 36.2% growth in retail credit which, in turn, has contributed to the 14.9% y-o-y increase in interest income from advances,” Canara Bank said.

Gross NPAs rise 18.6%

While the total business registered a 11% growth to Rs. 9.2 lakh crore, its domestic business grew by a higher 13% y-o-y to reach Rs. 8.63 lakh crore.

Global deposits rose 9.75%, while its domestic deposits increased 11.6%.

At the same time, the state-owned bank’s gross non-performing assets (NPAs) rose 18.6% to Rs. 44,659.56 crore compared with Rs. 37,657.76 crore during the same period a year earlier. Net NPAs rose 9.84% to Rs. 26,693 crore from Rs. 24,300.63 crore.

CASA deposits posted a 9.1% y-o-y growth with the savings bank deposits registering a 11.8% y-o-y growth. The CASA ratio stood at 32.43%.

On the asset quality side, “signs of recovery were visible” with recovery and upgradations, backed by a 56% quarter-on-quarter improvement in cash recovery.

“The stressed assets ratio is sequentially down to 12.1%, from 12.7%, highlighting the consistent efforts of the bank in improving the asset quality.

Further, the provision coverage ratio has improved to 60.69% from 54.52%,” the bank said in the statement.

Further, the bank has calibrated its growth in the corporate sector by limiting its exposure to sectors under stress and incrementally growing its business only with those corporations that are highly rated.

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