Canara Bank Q2: Net Profit Surges 43%, Asset Quality Improves

26 Oct 2023 , 04:00 PM

Canara Bank has reported a net profit of Rs 3,606 crore for the July-September quarter of FY24, reflecting a substantial 43% increase compared to the same period in the previous year. The bank’s net interest income (NII) also demonstrated strong growth, reaching Rs 8,903 crore, a 19% rise from the corresponding quarter in the previous fiscal.

Significantly, the bank’s asset quality improved, with the gross non-performing asset (NPA) decreasing to 4.76%, down from 6.37% in the year-ago period. The net NPA for the quarter also saw improvement, dropping to 1.41% from 2.19% in the previous year.

Canara Bank’s total deposits reached Rs 11.43 lakh crore, representing an 8.22% growth, while domestic advances stood at Rs 8.78 lakh crore, showing a 12.59% increase.

The bank’s retail asset model (RAM) credit expanded by 13.63% to Rs 5.16 lakh crore, constituting 56% of the total advances. The retail credit portfolio grew by 10.56%, with housing loans increasing by 12.32%, education loans by 14.68%, and vehicle loans by 9.29%.

Canara Bank’s retail portfolio reached Rs 1.48 lakh crore, experiencing a 10.56% growth. The housing loan portfolio increased by 12.32% to Rs 88,564 crore, and advances to the agriculture sector saw a significant growth of 20.54%, reaching Rs 2.36 lakh crore.

As of 3.30 pm, Canara Bank’s stock closed at Rs 359 on the BSE, indicating a 1.78% increase.