Canara Bank Q1 profit may grow 33% to Rs 304 cr, slippages seen below Rs 2500 cr

Public sector lender Canara Bank's profit in June quarter is expected to increase nearly 33 percent to Rs 304.3 crore against Rs 229 crore in same quarter last year.

Net interest income, the difference between interest earned and interest expended, may grow 13.3 percent to Rs 2,613.6 crore from Rs 2,307.4 crore YoY, according to average of estimates of analysts polled by CNBC-TV18.

Key things to watch out for:-

Analysts say if slippages come below Rs 2,500 crore (against Rs 3,100 crore in Q4FY17) and gross non-performing assets improve (from 9.63 percent in Q4) then that will be taken positively.

Low cost deposits may aid in controlling cost of funds and credit cost may remain high owing to ageing of NPAs.

Loan growth is expected to remain in single digits.