 "Canara Bank Q3 results: Profit rises 12.25% to Rs 4,104 cr, NII down 3%")
Canara Bank on Monday reported a 12.25 per cent increase in its standalone net profit for the third quarter (Q3) of the financial year 2024-25 (FY25), reaching Rs 4,104.20 crore. The bank had reported Rs 3,656.12 crore during the same period last year.
In a regulatory filing on Monday, the bank reported that its total income climbed to Rs 36,113.77 crore in Q3 FY25, a 12 per cent increase compared to Rs 32,333.93 crore year-on-year (Y-o-Y).
However, while the bank’s interest income rose to Rs 30,311.61 crore from Rs 28,038.83 crore a year earlier, its Net Interest Income (NII), which measures the difference between interest earned and interest expended, dipped by 2.85 per cent to Rs 9,148.57 crore from Rs 9,417 crore in Q3 FY24.
Asset quality improves
Canara Bank’s asset quality showed significant improvement. The gross non-performing asset (NPA) ratio declined to 3.34 per cent of total advances as of December 2024, compared to 4.39 per cent in December 2023. Similarly, the net NPA ratio fell to 0.89 per cent from 1.32 per cent during the same period, reflecting better management of bad loans.
Despite the improvement in asset quality, the bank’s provisions and contingencies jumped to Rs 2,398.25 crore in Q3 FY25, up from Rs 1,898.91 crore during the corresponding period last year.
Shares of Canara Bank were trading at Rs 92.10 on the BSE a 2:45 pm, down more than 3 per cent after the Q3FY25 financial results were released.