Canara Bank's net profit grows y-o-y by 72% in June quarter

26 Jul 2022 , 08:54 AM

During the quarter, core income from interest generation climbed by 8.3% to Rs18,176.64 crore

On the back of strong core income growth and a decline in bad loans, Canara Bank reported a roughly 72% increase in standalone net profit for the June 2022—2023 quarter, coming in at Rs2,022.03 crore.

Around the same time last year, the bank reported a net profit of Rs1,177.47 crore. According to a regulatory statement by Canara Bank, total revenue increased to Rs23,351.96 crore in April—June 2022—23 from Rs20,940.28 crore in the same period the previous year.

During the quarter, core income from interest generation increased by 8.3% to Rs18,176.64 crore.

Canara Bank saw improvement on the asset quality front as gross non-performing assets (NPAs) decreased to 6.98% of gross loans at the end of June 2022 from 8.50% at the end of June 2021.

Gross non-performing assets, often known as bad loans, were valued at Rs54,733.88 crore, down from Rs58,215.46 crore. Similarly, the percentage of net bad loans decreased from 3.46 to 2.48% ($18,504.93 billion) (Rs22,434 crore).

However, compared to the same quarter last year, the provision (other than tax) for bad loans and contingencies increased to Rs3,690 crore from Rs3,458.74 crore.

In comparison to the same quarter a year prior, the bank’s net profit increased 88% to Rs2,058.31 crore on a consolidated basis. From Rs23,018.96 crore to Rs23,739.27 crore, total income increased.