Canara Bank net profit rose 10% to ₹3,905 crore 

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State-owned Canara Bank posted a 10.47 per cent rise in net profit to ₹3,905 crore in the quarter ended June 30, 2024 compared to ₹3,535 crore in the year-ago period. The net interest income increased by 5.77 per cent and stood at ₹9,166 crore.

 The operating profit remained flat at ₹7,616 crore, showing a marginal increase from ₹7,604 crore. Provisions for the quarter decreased by 16 per cent year-on-year (YoY) to ₹2,282 crore, with provisions for non-performing assets declining by 10 per cent YoY. The net interest margin (NIM) decreased by 15 basis points to 2.9 per cent in Q1 of FY25, compared to 3.05 per cent in Q1 FY24. Sequentially, it declined from 3.07 percent in Q4FY24. 

In terms of asset quality, gross non-performing assets (NPAs) fell to 4.14 per cent in the first quarter, compared with 5.15 per cent in the first quarter of last year and 4.23 per cent in the March 2024 quarter. 

Net NPAs declined to 1.24 per cent in the reporting period against 1.27 per cent in the March quarter and 1.57 per cent in the year-ago quarter.

Business Growth 

Total deposits rose by 11.97 percent year-on-year (YoY) to ₹13,35,167 crore as of June 2024. Domestic deposits increased by 11.47 percent to ₹12,31,184 crore from ₹11,04,506 crore. Advances grew by 9.85 per cent YoY to ₹9,75,183 crore from ₹8,87,671 crore reported in June 2023. 

On the lending front, the retail credit grew by 23.54 per cent to ₹1,75,794 crore. The lending to agriculture grew by 8.14 per cent to ₹2,40,894 crore, and to MSME’s rose by 6.84 per cent to ₹1,35,062 crore. The RAM credit recorded a growth of 12.26 per cent exhibiting a growth of ₹5,51,750 crore. 

The proportion of low-cost deposits, comprising current account and savings account (CASA), decreased to 30.98 per cent by the end of June 2023, down from 33 per cent a year earlier. 

The public sector bank closed at ₹111.90 marking a dip of 0.53 per cent.