Canara Bank, a leading state-owned lender, has reported robust financial performance for the fourth quarter of the fiscal year 2023-24, with a notable 18.4 per cent increase in net profit. The bank’s net profit surged to Rs 3,757.23 crore, marking a significant rise compared to the same period last year.
In terms of asset quality, Canara Bank witnessed a notable decline in the gross Non-Performing Asset (NPA) ratio, which improved to 4.23 per cent compared to the previous quarter. Similarly, the net NPA ratio stood at 1.27 per cent, reflecting a commendable reduction and underlining the bank’s efforts in minimising credit risk.
Despite the overall improvement, the bank experienced a slight increase in fresh slippages during the reporting quarter. However, its Provision Coverage Ratio (PCR) remained robust at 89.10 per cent, indicating a prudent approach to provisioning for potential credit losses.
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Canara Bank also demonstrated strength in its lending operations, with a noteworthy increase in net interest income (NII) and net interest margins (NIM). The bank’s NII stood at Rs 9,580 crore, marking an 11.18 per cent increase compared to the previous year. Moreover, the NIM remained healthy at 3.07 per cent, reflecting the bank’s ability to manage its interest income and expenses effectively.
On the deposit and advance front, Canara Bank witnessed significant growth in its global business, with deposits and advances registering double-digit increases yearly. The bank’s domestic deposit and advance portfolios also witnessed healthy growth, further strengthening its position in the market.
