c During the reporting quarter (Q1FY25), the bank’s net interest income (NII) has increased by 6 per cent to Rs 9,166 crore. This figure was Rs 8,666 crore in the same period last year. Canara Bank has reported a net profit of Rs 3,905 crore in the first quarter of the current financial year, which is about 10 per cent higher than the net profit of Rs 3,534 crore in the same quarter last year. The bank has released the first quarter results on Thursday.
Net interest margin stood at 2.9%
Canara Bank’s total provisioning for the first quarter fell 16 per cent to Rs 2,282 crore, with provisioning for non-performing assets (NPAs) declining to 10 per cent year-on-year. Operating profit (before provisioning and contingency) remained almost stable at Rs 7,616 crore in the June quarter. This figure was Rs 7,606 crore in the same quarter last year. The bank’s non-interest income for the first quarter grew 10 per cent year-on-year to Rs 5,319 crore, as against Rs 4,819 crore in the same quarter last year. Meanwhile, the net interest margin declined to 2.9 per cent in the April-June 2024 period from 3.05 per cent in the same period last year and 3.05 per cent in the previous March quarter.
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Gross NPA declined to 4.14%
On the asset quality front, Canara Bank’s gross non-performing assets (GNPA) declined to 4.14 per cent in the first quarter as against 5.15 per cent in the first quarter of last year and 4.23 per cent in the March 2024 quarter. Net NPA also declined to 1.24 per cent in the June quarter as against 1.57 per cent in the same quarter a year ago and 1.27 per cent in the previous March quarter (Q4FY24).
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Domestic deposits increased by 11%
The capital adequacy ratio (CAR) stood at 16.38 per cent at the end of the June quarter, of which Tier-I is 14.37 per cent. The provision coverage ratio (PCR) stood at 89.22 per cent till June 2024, while it was 88.04 per cent in the quarter ended June 2023 and 89.1 per cent during the three months ended March 2024. The bank’s domestic deposits grew 11 per cent year-on-year to Rs 12.31 lakh crore, while domestic advances rose 9 per cent to Rs 9.2 lakh crore. On Thursday, Canara Bank’s stock fell nearly half a per cent to close at around Rs 112 on the NSE.
