More Stories

Informist, Thursday, Jul 25, 2024

--Canara Bank Apr-Jun net profit 39.05 bln rupees vs 35.35 bln 

--Canara Bank Apr-Jun total income 340.20 bln rupees vs 298.23 bln 

--Canara Bank Apr-Jun provisions 22.82 bln rupees vs 27.19 bln 

--Canara Bank Apr-Jun NPA provisions 21.71 bln rupees vs 24.18 bln 

--Canara Bank gross NPA ratio 4.14% as on Jun 30 vs 4.23% qtr ago 

--Canara Bank net NPA ratio 1.24% as on Jun 30 vs 1.27% qtr ago 

--Canara Bank Apr-Jun NIM 2.90% vs 3.05% qtr ago 
--Canara Bank Apr-Jun NII 91.66 bln rupees, up 5.8% on year 
--Canara Bank provision coverage ratio 89.22% as on Jun 30 
--Canara Bank Basel III capital adequacy ratio 16.38% as on Jun 30 

--Canara Bk global gross loans 9.75 trln rupees Jun 30, up 9.9% YoY 

--Canara Bk global deposits 13.35 trln rupees Jun 30, up 12% YoY 

--Canara Bk: Aim to have 95% provision coverage ratio at end-FY25 

--Canara Bk: To maintain 12% growth in retail, agri, MSME loans 

--Canara Bank: One PSU account from Andhra Pradesh may turn into NPA 

--Canara Bk: May divest some stake in Canara Robeco MF by Jan-Mar 

--Canara Bk: May divest some stake in Canara HSBC Life by Apr-Jun FY26 

MUMBAI – Canara Bank's net profit for the June quarter rose 10.5% on year to 39.05 bln rupees, but failed to meet analysts' estimates of 39.2-39.9 bln rupees. On a sequential basis, the bottomline was up nearly 4%.

The bank's total income increased to 340.20 bln rupees from 298.23 bln rupees a year ago. For Apr-Jun, the bank's net interest income increased nearly 6% to 91.66 bln rupees. The net interest margin moderated to 2.90% from 3.05% reported a quarter ago.

The asset quality of the bank improved, with the gross non-performing asset ratio falling to 4.14% as on Jun 30 from 4.23% a quarter ago and the net non-performing asset ratio at 1.24% as on Jun 30, against 1.27% a quarter ago. In a conference call, the bank's management said that one PSU account from Andhra Pradesh might turn into a non-performing asset. Without disclosing the amount, the bank said it had provided 5.6 bln rupees for it.

The bank's provisions fell around 16.1% on year to 22.82 bln rupees, of which provisions for non-performing assets fell 10.2% to 21.71 bln rupees. The provision coverage ratio was 89.22% as on Jun 30. The bank aims to have a provision coverage ratio of 95% by the end of 2024-25 (Apr-Mar), the management said.

The bank's Basel-III capital adequacy ratio was at 16.38% as on Jun 30. The management said the bank was well capitalised and doesn't need to raise capital. However, it might may divest some stake in Canara HSBC Life Insurance by 2025-26 (Apr-Jun) and some stake in Canra Robeco Mutual Fund by Jan-Mar.

In terms of balance sheet, global advances were up nearly 10% on year to 9.75 trln rupees as on Jun 30 and global deposits are up 12% on year to 13.35 trln rupees. The credit to deposit ratio of the bank was at 73.04% as on Jun 30 lower as compared to 73.20% a quarter ago and 74.44% a year ago.

Under the advances, the retail, agriculture and MSME segment was up 12.3% on year to 5.52 trln rupees, retail credit was up 23.5% on year to 1.75 trln rupees and housing loans were up 11.9% on year to 961.08 bln rupees. The credit cost of the bank were at 0.90%, down by 20 basis points on year, as per the bank's investor presentation. The bank aims to maintain growth in the retail, agriculture and MSME segment at 12%.

Under global deposits, domestic deposits were up 11.47% on year to 12.31 trln rupees as on Jun 30. Current, savings account deposits were up nearly 5% year to 3.81 trln rupees as on Jun 30 and term deposits were up 14.8% on year to 3.81 trln rupees.