Updated 15:58 IST, July 25th 2024
Canara Bank Q1 profit rises 10% to Rs 3,905 crore on lower bad loans
Canara Bank's total income rose to Rs 34,020 crore, up from Rs 29,823 crore a year earlier, according to a regulatory filing.

State-owned Canara Bank reported a 10 per cent increase in net profit, reaching Rs 3,905 crore for the first quarter ended June 30, driven by a reduction in bad loans. This marks an improvement from the Rs 3,535 crore profit recorded in the same period last year.
For the quarter, Canara Bank's total income rose to Rs 34,020 crore, up from Rs 29,823 crore a year earlier, according to a regulatory filing. Interest income also saw an increase, climbing to Rs 28,701 crore from Rs 25,004 crore in the corresponding quarter of the previous year.
The bank's net interest income grew by 6 per cent to Rs 9,166 crore, compared to Rs 8,666 crore in the same quarter last year. However, the net interest margin (NIM) declined to 2.90 per cent from 3.05 per cent. Canara Bank's Managing Director, K Satyanarayana Raju, expressed optimism about the future, stating, "We expect the NIM to improve and end with 2.95 per cent."
In terms of asset quality, gross non-performing assets (NPAs) reduced to 4.14 per cent of gross advances as of June 30, 2024, down from 5.15 per cent at the end of the first quarter of the previous fiscal year. Net NPAs also decreased to 1.24 per cent from 1.57 per cent.
Provisions for bad loans declined to Rs 2,171 crore from Rs 2,418 crore in the same quarter last year. The capital adequacy ratio saw a slight increase to 16.28 per cent compared to 16.24 per cent on June 30, 2023. The provision coverage ratio (PCR) improved by 118 basis points to 89.22 per cent, with the bank aiming to surpass 90 per cent by the end of the current fiscal year.
Regarding recovery, Raju noted the bank's target of Rs 1,000 crore per quarter. On the capital raising front, the board has approved raising Rs 8,500 crore for the current fiscal year through both Tier I and Tier II bonds.
Additionally, Canara Bank plans to dilute its stake in two subsidiaries, Canara HSBC Life Insurance and Canara Robeco Asset Management Company, through listings. The dilution is expected to be up to 25 per cent in both joint ventures.
(With PTI inputs)
Published 15:58 IST, July 25th 2024