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Informist, Tuesday, Oct. 29, 2024

 

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--Canara Bank Jul-Sept net profit INR 40.15 bln 
--Analysts saw Canara Bank Jul-Sept net profit INR 37.73 bln 
--Canara Bank Jul-Sept net profit INR 40.15 bln vs INR 36.06 bln 
--Canara Bank Jul-Sept total income INR 347.21 bln vs INR 314.72 bln 
--Canara Bank gross NPA ratio 3.73% as on Sept 30 vs 4.14% qtr ago 
--Canara Bank net NPA ratio 0.99% as on Sept 30 vs 1.24% qtr ago 
--Canara Bank Jul-Sept provisions INR 22.51 bln vs INR 26.08 bln 
--Canara Bank Basel III capital adequacy ratio 16.57% as on Sept 30 
--Canara Bank Jul-Sept NPA provisions INR 25.87 bln vs INR 22.01 bln 
--Canara Bank Apr-Sept net profit INR 79.20 bln vs INR 71.41 bln 
--Canara Bank provision coverage ratio 90.89% as on Sept 30 
--Canara Bank Apr-Sept total income INR 687.41 bln vs INR 612.95 bln 
--Canara Bank: Additional provision INR 6.78 bln for 10 accts as of Sept 30 
--Canara Bank global deposits at INR 13.47 tln as on Sept 30, up 9.34% YoY 
--Canara Bank global advances at INR 10.12 tln as on Sept 30, up 9.53% YoY 
--Canara Bank global credit-deposit ratio at 75.11% as on Sept 30 
--Canara Bank Jul-Sept net interest income INR 93.15 bln, up 4.63% on year 
--Canara Bank Jul-Sept net interest margin 2.88% vs 2.90% quarter ago 
--Canara Bank current, savings account ratio 31.27% as on Sept 30 
--Canara Bank Jul-Sept credit cost 0.97% vs 0.90% in Apr-Jun 
--Canara Bank Jul-Sept fresh slippages INR 23.09 bln 

 

By Kshipra Petkar

 

MUMBAI – Canara Bank has reported a net profit of INR 40.15 billion for the September quarter, up 11.3% on year, beating analysts' estimate. As per the average of estimates from five brokerage firms, the bottom line was pegged at INR 37.73 billion. Sequentially, the net profit was up nearly 3%. Improvement in income and a fall in provisions supported the bank's bottom line.

 

For Apr-Sept, the bank's net profit stood at INR 79.20 billion and total income at INR 687.41 billion.

 

The bank's total income increased 10.32% on year to INR 347.21 billion in the reporting quarter. Net interest income was up 4.63% on year at INR 93.15 billion in Jul-Sept. As per analysts' estimates, the net interest income was seen rising 4.3% on year to INR 92.81 billion. The net interest margin moderated to 2.88% in the reporting quarter from 2.90% a quarter ago. 

 

Provisions fell to INR 22.51 billion in Jul-Sept from INR 26.08 billion a year ago and INR 22.82 billion a quarter ago. The fall in provisions supported the bank's profitability. According to the notes by the bank, it held additional provision of INR 6.78 billion for 10 accounts as of Sept 30.

 

The asset quality improved during the quarter. The gross non-performing asset ratio improved to 3.73% from 4.14% reported a quarter ago and the net NPA ratio was at 0.99%, lower than 1.24% a quarter ago. Provisions for non-performing assets increased 17.5% on year to INR 25.87 billion during the reporting quarter. The provision coverage ratio of the bank stood at 90.89% as on Sept. 30.

 

The bank's business performance improved in the reporting quarter, with global gross advances up 9.53% on year at INR 10.12 trillion as on Sept. 30 and global deposits up 9.34% at INR 13.47 trillion. The global credit-deposit ratio was at 75.11% as on Sept. 30.

 

Within global advances, domestic advances were up 8.64% on year and overseas gross advances rose 26.55% on year. The loan book from the retail, agriculture and micro, small and medium enterprise segment grew 11.54% on year to INR 5.77 trillion, with the highest growth seen in the retail segment. The retail credit book was up 31.27% on year at INR 1.95 trillion and housing loans were up 12.3% on year at INR 994.52 billion as on Sept. 30.

 

The contribution of the retail, agriculture and micro, small and medium enterprise segment to the total loan book increased to 57% as on Sept. 30 from 56% a year ago, as per the bank's investor presentation. Corporate and other loan book grew nearly 7% on year to INR 4.35 trillion.

 

Within global deposits, domestic deposits grew 8.34% on year to INR 12.39 trillion. Sequentially, domestic deposits were largely flat. Current and savings account deposits increased 5.36% on year to INR 3.87 trillion and term deposits rose 9.75% to INR 8.51 trillion. However, on a sequential basis, the growth was slow with CASA deposits and term deposits growing 1.54% and 0.19% respectively. Retail term deposits were up 6.86% on year at INR 5.13 trillion. On quarter, they fell 0.23%.  

 

The bank's credit cost for the reporting quarter was 0.97%, higher compared to 0.90% seen a quarter ago. The slippage ratio declined to 0.25% in Jul-Sept from 0.33% a quarter ago. The bank reported fresh slippages of INR 23.09 billion in Jul-Sept and it wrote off loans of INR 31.21 billion.

 

The bank's Basel-III capital adequacy ratio was 16.57% as on Sept 30. "During the quarter ended Sept. 30, bank has issued Basel Ill compliant additional tier-I bonds aggregating to ~3000.00 crore (INR 30 billion) through private placement. The bank has not redeemed any of Basel Ill compliant tier I bonds and tier II bonds due to maturity during the six months period ended," the bank said in its notes. Common equity tier-I ratio was at 12% and the additional tier-I ratio was at 2.64% as on Sept. 30.

 

At 1422 IST, shares of Canara Bank were 2.8% higher at INR 103.54 on the National Stock Exchange.  End

 

Edited by Avishek Dutta

 

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