State-owned lender, Canara Bank on May 8 reported 18.4 percent rise in its net profit to Rs 3,757.23 crore in the fourth quarter of the financial year 2023-24. On sequential basis, net profit rose 2.8 percent.
Net profit of the bank rose on back of better asset quality and increase in net interest income in the reporting quarter.
Asset quality
In the reporting quarter, gross non-performing asset (NPA) ratio of the bank improved to 4.23 percent, as against 4.39 percent in a quarter ago period, and 5.35 percent in a year ago period.
Net NPA ratio stood at 1.27 percent as on March 31, as compared 1.32 percent in a quarter ago period and 1.73 percent in a year ago period.
Gross NPA of the bank declined 112 basis points on-year and net NPA eased 46 bps on-year in January-March quarter, as per investor presentation.
However, fresh slippages of the bank in the reporting quarter increased to Rs 3,082 crore, as compared to Rs 2,857 crore in a year ago period.
Provision Coverage Ratio (PCR) stood at 89.10 percent as at Mar 31, 2024 against 89.01 percent in a quarter ago period, and 87.31 percent in a year ago period.
SMA 2 loans of the bank of Rs 5 crore and above eased to Rs 3,897 as on March 31, as compared to Rs 4,516 crore in a quarter ago period. However, it surged on a yearly basis. In a year ago period, outstanding SMA 2 loans of the bank stood at Rs 1,880 crore, as per investor presentation.
NII and NIM
Net interest income of the bank in January-March quarter stood at Rs 9,580 crore, as compared to Rs 8,617 crore in a year ago period. It has increased by 11.18 percent on a yearly basis.
Net interest margins (NIM) of the lender stood at 3.07 percent as on March 31, 2024, as compared to 3.03 percent in a quarter ago period, and 3.07 percent in a year ago period.
On a cumulative basis, NIMs stood at 3.05 percent in January-March quarter, as against 3.02 percent in October-December quarter ago period, and 2.95 percent in January-March quarter of FY23.
Deposits and advances
Global Business increased by 11.31 percent on-year to Rs 2.28 lakh crore as at March 31, 2024, with Global Deposits at Rs 1.31 lakh crore, which grew 11.29 percent on-year, and Global Advance (gross) at Rs 9.60 lakh crore, up 11.34 percent on-year, as per press release of the lender.
Domestic Deposit of the bank stood at Rs 1.22 lakh crore as at Mar 31, 2024 with growth of 10.98 percent on-year.
Domestic Advances (gross) of the bank stood at Rs 9.08 lakh crore as at March 31, 2024 grew by 11.06 percent on-year.
Retail lending Portfolio increased 11.68 percent on-year to Rs 1.56 lakh crore as on March 31, and Housing Loan Portfolio increased by 10.81 percent on-year to Rs 93,482 crore.
Advances to Agriculture & Allied grew by 18.69 percent on-year to Rs 2.53 lakh crore as at Mar 31, 2024.
Guidance
The lender has given a guidance of 10 percent for Advances Growth (Global), and Deposits Growth (Global) of 9 percent for the financial year 2024-25.
Gross NPA (Global) guidance was given 3.50 percent and Net NPA (Global) of 1.10 percent for FY25.
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