Canara Bank Reports Impressive 42.8% Surge in Q2 FY 23-24 Net Profit

Canara Bank Reports Impressive 42.8% Surge in Q2 FY 23-24 Net Profit

Canara Bank, one of India’s leading financial institutions, has announced a substantial 42.8% increase in its net profit for the second quarter of the financial year 2023-24. The bank reported a net profit of ₹3,606 crore, compared to ₹2,525.5 crore in the same period the previous year.

This remarkable financial performance has surpassed analysts’ expectations, as per a CNBC-TV18 poll, where the predicted net profit was ₹3,476.9 crore.

Canara Bank’s positive financial indicators extend beyond net profit. The net interest income (NII) showed a robust growth of 19.76%, reaching ₹8,903 crore, while the net interest margin (NIM) improved to 3.02%, marking a 19 basis point increase. The bank also managed to reduce its cost-to-income ratio by 53 basis points, now standing at 43.68%, according to a regulatory filing.

In addition to these accomplishments, Canara Bank witnessed remarkable growth in its retail credit segment, with housing loans expanding by 12.32%, while education loans and vehicle loans saw substantial year-on-year growth of 14.68% and 9.29%, respectively.

The bank’s asset quality showed significant improvement, with the gross non-performing asset (NPA) ratio decreasing to 4.76%, down from 5.15% in June 2023 and 6.37% in September 2022. Similarly, the net NPA ratio decreased to 1.41%, reflecting a decline of 78 basis points.

Canara Bank’s provision coverage ratio improved to 88.73%, indicating an increase of 337 basis points. The Capital Adequacy Ratio (CRAR) stood at 16.20% as of September 2023, with CET (Common Equity Tier) at 11.58%. The bank’s Return on Assets (ROA) improved to 1.01% for Q2 FY24, compared to 0.71% in Q2 FY23. Likewise, the Return on Equity (ROE) increased to 22.51% for Q2 FY24, showing a substantial jump from 17.37% in Q2 FY23.

Canara Bank’s global business expanded to ₹21,56,181 crore, marking a year-on-year growth of 10.12%. The bank’s domestic deposit reached ₹11,43,394 crore as of September 2023, growing by 8.22% year-on-year. Domestic advances (gross) reached ₹8,78,256 crore, indicating a significant increase of 12.59% year-on-year.

Canara Bank’s retail lending portfolio also showed substantial growth, reaching ₹1,48,209 crore, registering a year-on-year growth of 10.56%. The housing loan portfolio recorded robust growth at 12.32%. The bank extended substantial support to the agriculture sector, with advances to agriculture growing by 20.54% year-on-year to ₹2,36,953 crore as of September 2023.

As of September 2023, Canara Bank operates 9,518 domestic branches, with 3,059 in rural areas, 2,717 in semi-urban areas, 1,895 in urban areas, and 1,847 in metro areas, along with 10,553 ATMs. Additionally, the bank maintains four international branches in London, New York, Dubai, and Gift City (Gandhinagar).

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