- Economy
- Education And Career
- Companies & Markets
- Gadgets & Technology
- After Hours
- Healthcare
- Banking & Finance
- Entrepreneurship
- Energy & Infra
- Case Study
- Video
- More
- Sustainability
- Web Exclusive
- Opinion
- Luxury
- Legal
- Property Review
- Cloud
- Blockchain
- Workplace
- Collaboration
- Developer
- Digital India
- Infrastructure
- Work Life Balance
- Test category by sumit
- Sports
- National
- World
- Entertainment
- Lifestyle
- Science
- Health
- Tech
Canara Bank Records 74.8% YoY Rise In Q1 Profit After Tax At Rs 3,534.84 Cr
The boost in profit was attributed to a rise in net interest income, improved interest margins, and better asset quality
Photo Credit :
Canara Bank reported a significant 74.8 per cent year-on-year (YoY) increase in its profit after tax for the first quarter of the current financial year, reaching Rs 3,534.84 crore. The boost in profit was attributed to a rise in net interest income, improved interest margins, and better asset quality.
The state-owned lender's net profit in the corresponding period last year was Rs 2,022.03 crore. During the June quarter, Canara Bank witnessed an improvement in asset quality, with the gross non-performing assets (NPAs) ratio at 5.15 per cent, compared to 5.35 per cent in the previous quarter and 6.98 per cent in the same period last year. The net NPA ratio stood at 1.57 per cent, an improvement from 1.73 per cent in the previous quarter and 2.48 per cent in the year-ago period.
The bank's better asset quality reduces the outstanding risk-weighted assets, leading to capital savings for the lender. In absolute terms, Canara Bank's gross NPA stood at Rs 45,727 crore as of June 30, down from Rs 54,734 crore in the year-ago period. The net NPA also decreased to Rs 13,461 crore from Rs 18,505 crore.
The net interest income rose by 27.72 per cent YoY to Rs 8,666 crore, while the total interest income increased to Rs 25,004 crore in the April-June quarter from Rs 18,177 crore in the corresponding period last year. The net interest margin improved to 3.05 per cent, up from 2.95 per cent in the previous quarter and 2.78 per cent in the year-ago period.
Canara Bank's global deposits rose by 6.65 per cent YoY to Rs 11.92 lakh crore, and domestic deposits increased by 4.9 per cent YoY to Rs 11.05 lakh crore. Term deposits of the state-owned lender grew by 6.98 per cent to Rs 7.04 lakh crore.
On the advances front, global gross advances surged by 13.27 per cent YoY to Rs 8.88 lakh crore, while domestic gross advances rose by 12.69 per cent YoY to Rs 8.18 lakh crore.
In the treasury income segment, Canara Bank reported a 71.01 per cent YoY fall, with treasury income reaching Rs 536 crore. Profit on exchange transactions declined by 75.21 per cent YoY to Rs 236 crore, and profit on the sale of investments fell by 66.93% YoY to Rs 294 crore during the April-June quarter, as per the investors' presentation.