Canara Bank Q1FY24 net up 74.81% to Rs 3,534.8 crore, NII up 27.7% YoY

Canara Bank’s net profit during the quarter ended June 30 (Q1FY24) grew by 74.81 per cent year-on-year (YoY) to Rs 3,534.84 crore on the back of a surge in net interest income (NII) and a fall in provisions for bad loans.

Sequentially, the Bengaluru-based public-sector lender’s profit increased 11.34 per cent from Rs 3,175 crore in the quarter ended March 2023 (Q4 of FY23). Its stock was trading 2.87 per cent higher at Rs 347.75 a share on BSE.

NII expanded 27.7 per cent to Rs 8,665.15 crore in Q1 of FY24 against Rs 6,784.73 crore in the same quarter a year ago. Sequentially, NII was flat compared to Rs 8,616.79 crore in Q4FY23.

Net interest margin (NIM) expanded 27 basis points (bps) to 3.05 per cent in Q1 of FY24 against 2.78 per cent in the year-ago period, the bank said in an analyst presentation.

While non-interest income fell 6.88 per cent YoY to Rs 4,819.01 crore, it marginally rose from Rs 4,775.17 crore in Q4FY23.

The lender’s provisions for non-performing assets (NPAs) declined from Rs 2,673.26 crore in Q1 of FY23 to Rs 2,417.64 crore in Q1 of FY24. Sequentially, it rose marginally, from Rs 2,399.24 crore in Q4FY23. Advances grew 13.27 per cent YoY to Rs 8.87 trillion in Q1 of FY24.

Total deposits increased 6.65 per cent YoY to Rs 11.92 trillion at the end of Q1FY24. The share of low-cost deposits — current account and savings account (CASA) — declined to 33 per cent at the end of June 2023 from 34.3 per cent a year ago.

The asset quality profile improved, with gross NPAs declining to 5.15 per cent in June 2023 from 6.94 per cent in June 2022.

Net NPAs also declined to 1.57 per cent in June 2023 from 2.48 per cent a year ago.

The provisioning coverage ratio (PCR) improved to 88.04 per cent in June 2023 from 84.51 per cent a year ago. 

Canara Bank’s capital adequacy ratio stood at 16.24 per cent with common equity tier-1 (CET1) capital at 11.50 per cent at the end of June.