Canara Bank releases Q1FY23 results; here are top five takeaways

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26 Aug, 2025 12:21

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Public sector lender Canara Bank on July 25 reported 88 percent year-on-year (YoY) growth in its consolidated net profit for the quarter ended June at Rs 2,058.3 crore, aided by robust loan growth and stable asset quality. Here are the top five key takeaways from the lender’s Q1 report card:

Advances growth robust

Canara Bank’s total advances stood at Rs 7.83 lakh crore, up 14.5 percent YoY and 5.7 percent sequentially in the April-June quarter. This was higher than 10-11 percent average industry level credit growth witnessed recently.

Of the total loans, corporate loans accounted for 44 percent, agriculture loans 24 percent, while micro, small and medium enterprises (MSME) and retail loans accounted for 16 percent each.

Gold loan business grew 26.20 percent on year to over Rs 1 lakh crore as on June end, as per the bank’s Q1FY23 investor presentation.

CASA dips QoQ

Canara Bank’s low-cost current account and savings account (CASA) deposits de-grew 2.1 percent QoQ to Rs 3.61 lakh crore as on June 30. On a yearly basis, CASA deposits rose 8.8 percent. Term deposits, meanwhile, grew 5 percent QoQ and 8.4 percent YoY to Rs 6.91 lakh crore as on June end.

Total bank deposits stood at Rs 11.18 lakh crore as on June end, up 2.9 percent QoQ and 9.4 percent YoY.

Asset quality improves

Canara Bank’s gross non-performing asset ratio (GNPA) improved to 6.98 percent as on June 30 from 7.51 percent as on March end and 8.50 percent last year.

Net NPAs improved to 2.48 percent in the first quarter of FY 23 as against 2.65 percent in last quarter of FY22.

Slippage ratio improved 2 basis points (bps) sequentially to 0.36 percent during the reporting quarter, while credit cost trimmed to 1.38 percent from 1.53 percent the last quarter.

Other income falls

In-line with its peers, Canara Bank’s other income was lower in the given quarter primarily due to hit on treasury income. The bank’s other income stood at Rs 5,202.4 crore during April-June, lower than Rs 5,950.9 crore a year ago.

Other income includes proceeds from profit or loss on sale of assets, revaluation of investments, foreign exchange and derivative transactions, among others, the bank said.

Liquidators appointed in Syndbank subsidiary

Canara Bank informed in its notes to account adjoining the Q1 financial results that its wholly-owned subsidiary Syndbank Services Ltd is presently undergoing liquidation process and a liquidator has been appointed by the shareholders of the company on June 22.

As per reports, Syndbank is classified as a non-government run company and operates in the field of data processing. Incorporated in 2006, its authorized share capital was Rs 10 crore and its paid-up capital is Rs 25 lakh.