Canara Bank has reported a robust financial performance for the first quarter of the current fiscal year, with a notable rise in net profit. The bank’s net profit surged by 10.5 per cent year-on-year (YoY), reaching Rs 3,905.28 crore. Sequentially, the net profit increased by 4 per cent.
Canara Bank demonstrated an improvement in asset quality during the quarter. The Gross Non-Performing Asset (NPA) ratio declined to 4.14 per cent from 4.23 per cent in the previous quarter and 5.15 per cent in the same period last year. Similarly, the Net NPA ratio improved to 1.24 per cent from 1.27 per cent in the previous quarter and 1.57 per cent a year ago.
In absolute terms, the Gross NPA stood at Rs 40,356.38 crore as of June 30, compared to Rs 40,604.57 crore on March 31 and Rs 45,727.37 crore a year earlier. Net NPA decreased to Rs 11,701.77 crore from Rs 11,822.83 crore in the previous quarter and Rs 13,461.43 crore in the corresponding period last year. The Provision Coverage Ratio (PCR) improved by 118 basis points to 89.22 per cent.
The bank reported fresh slippages of Rs 3,015 crore in the April-June quarter, down from Rs 3,188 crore a year ago.
Canara Bank‘s total domestic deposits grew by 11.47 per cent YoY to Rs 12.31 lakh crore in the reporting quarter, compared to Rs 11.05 lakh crore in the same period last year. Within the domestic deposit mix, CASA (Current Account Savings Account) deposits rose by 4.66 per cent to Rs 3.81 lakh crore, with savings accounts accounting for Rs 3.32 lakh crore, up 3.62 per cent.
Term deposits also saw a significant rise, growing by 14.82 per cent year-on-year to Rs 8.50 lakh crore, with Retail Term Deposits standing at Rs 5.15 lakh crore. The bank’s global deposits reached Rs 13.36 lakh crore, an increase from Rs 11.97 lakh crore a year earlier.
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Canara Bank’s domestic gross advances grew by 9.17 per cent YoY to Rs 9.21 lakh crore. Within this, RAM (Retail, Agriculture, and MSME) credit increased by 12.26 per cent to Rs 5.52 lakh crore. Retail advances surged to Rs 1.76 lakh crore, up 23.54 per cent from Rs 1.43 lakh crore a year ago. Agriculture and allied advances grew by 8.14 per cent to Rs 2.53 lakh crore.
Advances to corporates and others increased by 6.87 per cent YoY to Rs 4.24 lakh crore. The bank’s global gross advances rose by 9.86 per cent to Rs 9.8 lakh crore.
Notably, Canara Bank reduced its credit exposure to non-banking finance companies by 18.15 per cent YoY and 10.19 per cent quarterly to Rs 1.19 lakh crore. Additionally, the bank reduced its credit to the petroleum, coal products, and nuclear fuels industry by 11.82 per centYoY and 3.62 per cent quarter-on-quarter.
The latest results reflect Canara Bank’s steady progress in improving asset quality and maintaining strong growth in deposits and advances, highlighting its robust financial health and strategic focus.
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