 "Canara Bank Q4 net profit rises 33% to Rs 5,004 crore despite NIM drop")
State-owned Canara Bank reported a 33 per cent year-on-year (Y-o-Y) growth in net profit at Rs 5,004 crore in the fourth quarter of 2024–25 (Q4 FY25), aided by other income amid pressure on net interest margin.
For the full financial year, Canara Bank posted a net profit of Rs 17,027 crore in FY25, registering a 16.99 per cent Y-o-Y growth.
The bank’s other income—comprising fees, commission, and treasury earnings—expanded by 22 per cent Y-o-Y to Rs 6,351 crore. Its fee-based income and treasury income rose by 20 per cent and 15.03 per cent, respectively, Y-o-Y. However, treasury income declined 18.84 per cent sequentially. The board recommended a dividend of Rs 4 per share for FY25.
Net interest income (NII), a key revenue source, for the reporting quarter fell marginally by 1.44 per cent Y-o-Y to Rs 9,442 crore. The lender’s net interest margin (NIM)—the difference between interest received and interest paid—from domestic operations in Q4 FY25 fell to 2.73 per cent, down from 3.07 per cent in the same period the previous year.
The cost-income ratio improved to 47.55 per cent (excluding wage revisions and one-time items) as on 31 March 2025, from 50.08 per cent a year ago.
Canara Bank’s global advances increased by 11.74 per cent Y-o-Y. It reported credit growth in domestic advances of 11.06 per cent Y-o-Y at Rs 10 trillion as of 31 March 2025. Retail advances and corporate loans registered 13.23 per cent and 9.83 per cent Y-o-Y growth, respectively.
The bank’s global deposits increased by 11.01 per cent to Rs 14.06 trillion. Domestic deposits expanded by 9.56 per cent Y-o-Y to Rs 13.31 trillion. The share of low-cost deposits—Current Account and Savings Account (CASA)—stood at 31.17 per cent in March 2025.
The asset quality profile improved with gross non-performing assets (NPAs) declining to 2.94 per cent as of 31 March 2025, from 4.23 per cent a year ago. Net NPAs declined to 0.70 per cent from 1.27 per cent in March 2024. The provision coverage ratio (PCR), including write-offs, stood at 92.70 per cent in March 2025.
Its capital adequacy ratio stood at 16.33 per cent, with the Common Equity Tier I (CET-1) at 12.03 per cent.