Canara Bank Q2 profit surges 43% to ₹3,606 cr; NII up 10%
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Public sector lender Canara Bank reported 42.81% YoY growth in net profit at ₹3,606 crore in the July-September quarter of 2023-24 against ₹2,525 crore for September 2022.
The PSU lender's net interest income stood at ₹7,616 crore, up 10.30%, while the net interest margin improved 19 bps to 3.02% in the said quarter. Canara Bank's gross advances at ₹9,23,966 crore grew 12.11% and the cost-to-income ratio dipped 53 bps to 43.68%.
In the loan portfolio, Canara Bank saw the retail credit growing 10.56%, with housing loan growth was at 12.32%. The education loan category saw 14.68% growth and vehicle loans surged 9.29%.
In terms of non-performing assets, Canara Bank saw a gross NPA ratio of 4.76%, down by 161 bps, while the net NPA ratio of 1.41%, down by 78 bps. "GNPA ratio stood at 4.76% as of September 2023 against 5.15% as of June 2023, 6.37% as of September 2022...NNPA ratio stood at 1.41% as of September 2023 as against 1.57% as of June 2023, 2.19% as of September 2022," Canara Bank says.
The bank's provision coverage ratio (PCR) improved to 88.73% as of September 2023 from 85.36% in the year-ago period. In terms of capital adequacy, the capital-to-risk (weighted) assets ratio stood at 16.20% as of Q2, out of which CET1 is 11.58%, Tier-I is 13.6% and Tier-II is 2.6%.
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In its work towards priority sector allocation and financial inclusion, Canara Bank says it achieved targets in the priority sector at 45.51% and agricultural credit at 21.39% of ANBC in Q2 against the norm of 40% and 18%, respectively.
Credit to small and marginal farmers stood at 15.13% of ANBC, against the norm of 10%. Credit to weaker sections stood at 21.51% of ANBC, against the norm of 12%.
In terms of branch network, the bank had 9,518 domestic branches as of September 30, 2023, out of which 3,059 were rural, 2,717 semi-urban, 1,895 urban & 1,847 metro, along with 10,553 ATMs. The bank also has 4 international branches in London, New York, Dubai and Gift City (Gandhinagar).
Amid the development, shares of Canara Bank are trading up 1.70% at ₹359.55 after a weak opening on the BSE. Canara Bank shares are currently trading 7.2% down as compared to the 52-week high of ₹386.50 touched on October 3, 2023. At the current share price of ₹358.35, the m-cap of the lender stands at ₹65,009.36 crore.