More Stories

Informist, Tuesday, Jul 23, 2024

MUMBAI – Canara Bank is expected to report its Apr-Jun net profit in the range of 39.20-39.86 bln rupees, according to the estimate of three brokerage firms. In the corresponding quarter last year, the bank's net profit was 35.35 bln rupees.

The state-owned bank will detail its quarterly earnings on Thursday. The improvement in the bank's bottomline is expected due to lower operational expenditure, priority sector lending certificate fees, and healthy treasury gains, brokerage firms said. In the previous quarter, the bank's operating expenses rose 21% to 74.11 bln rupees, which was 7% higher on a quarterly basis.

"We expect bank to report around 11% year-on-year earnings growth in spite of a flat on-year PPOP (pre-provision operating profit) as provisions are expected to be lower YoY (year-on-year)," Kotak Institutional Equities said. In Apr-Jun (2023-24), the bank's provisions stood at 27.19 bln rupees, while non-performing assets provisions were 24.18 bln rupees.

Brokerage firms pegged the net interest income for the bank in the range of 91.44 bln-96.60 bln rupees, against 86.66 bln rupees a year ago. They also see net interest margins declining on a sequential basis, largely due to a marginal increase in the cost of deposits. In Jan-Mar, net interest margin for the bank was 3.07% against 3.03% a quarter ago.

Brokerage firms largely expect the asset quality of the bank to improve. "We expect slippages at 1.3% and the trend of net NPL (non-performing loans) decline will continue," Kotak Institutional Equities said. Meanwhile, Emkay Global Financial Services Ltd said higher agricultural slippages could keep the overall slippages elevated. As on Mar 31, the lender's gross non-performing asset ratio was 4.23%, while net NPA ratio was 1.27%.

Advances and deposit growth are the key monitorables, brokerage firms said. The bank had not released its provisional data for the reporting quarter. Today, shares of the state-owned bank closed 1.7% lower at 112.86 rupees on the National Stock Exchange.

Following are the Apr-Jun earnings estimates, in million rupees, for Canara Bank based on reports from three brokerages:

End

Reported by Nishat Anjum

Edited by Vandana Hingorani

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.