[ad_1]
 "Canara bank")
The provisioning coverage ratio (PCR), including written-off accounts, improved to 89.22 per cent in June 2024 from 88.04 per cent in June 2023. (Photo: Wikimedia Commons)
Canara Bank’s net profit during the quarter ended June 30 (Q1FY25) grew by 10.5 per cent year-on-year to Rs 3,905 crore, backed by non-interest income such as fees and recoveries. It had posted a net profit of Rs 3,535 crore in the quarter ended June 2023 (Q1FY24).
Sequentially, the Bengaluru-based public-sector lender’s profit increased by 3.94 per cent from Rs 3,757 crore in the quarter ended March 2024 (Q4 of FY24). Its stock was trading 0.53 per cent higher at Rs 113.1 per share on BSE.
Net interest income (NII) expanded by 5.77 per cent to Rs 9,166 crore in Q1 of FY25, against Rs 8,666 crore in the same quarter a year ago. Sequentially, NII declined by 4.32 per cent from Rs 9,580 crore in Q4FY24, according to the analyst presentation filed with BSE.
The net interest margin (NIM) moderated by 15 basis points to 2.9 per cent in Q1 of FY25, against 3.05 per cent in the quarter ended June 2023 (Q1FY24). Sequentially, it fell from 3.07 per cent in Q4FY24.
While non-interest income rose by 10.38 per cent year-on-year to Rs 5,319 crore, sequentially it rose marginally from Rs 5,217 crore in Q4FY24. Fee-based income was up 16.75 per cent year-on-year to Rs 1,910 crore. Commissions and exchanges rose by 34.2 per cent year-on-year to Rs 353 crore. The recoveries from written-off accounts grew by 45.48 per cent year-on-year to Rs 1,158 crore. However, the treasury income fell by 6.16 per cent to Rs 503 crore.
The lender’s provisions for non-performing assets (NPAs) declined from Rs 2,417.6 crore in Q1 of FY24 to Rs 2,170.8 crore in Q1 of FY25. Sequentially, they also fell marginally from Rs 2,279.8 crore in Q4FY24.
Advances grew by 9.86 per cent year-on-year to Rs 9.75 trillion in Q1 of FY25. The retail lending portfolio increased by 23.54 per cent year-on-year to Rs 1.75 trillion as at the end of June 2024, the bank said in a statement.
Total deposits increased by 11.97 per cent year-on-year to Rs 13.35 trillion at the end of June 2024. The share of low-cost deposits — current account and savings account (CASA) — declined to 30.98 per cent at the end of June 2023 from 33.0 per cent a year ago.
The asset quality profile improved, with gross NPAs declining to 4.14 per cent in June 2024 from 5.15 per cent in June 2023. Net NPAs also declined to 1.24 per cent in June 2024 from 1.57 per cent a year ago.
The provisioning coverage ratio (PCR), including written-off accounts, improved to 89.22 per cent in June 2024 from 88.04 per cent in June 2023.
Canara Bank’s capital adequacy ratio stood at 16.38 per cent, with common equity tier-1 (CET1) capital at 12.05 per cent at the end of June 2024.
First Published: Jul 25 2024 | 2:52 PM IST
[ad_2]
Source link