Canara Bank reported a 65 per cent year-on-year (y-o-y) jump in fourth quarter standalone net profit at ₹1,666 crore against ₹1,011 crore in the year ago quarter due to sharp decline in bad loan provisions, write-back in standard asset provisions and healthy growth in net interest income (NII).

The Bengaluru-headquartered public sector bank’s net profit soared 122 per cent yoy to ₹5,678 crore (₹2,558 crore in FY21).

The Bank’s Board declared a dividend of ₹6.50 per equity share (65 per cent) of face value of ₹10 eacb for the year 2021-22.

In the reporting quarter, NII (difference between interest earned and interest expended) was up 25 per cent yoy at ₹7,006 crore (₹5,611 crore in the year ago quarter).

Non-interest income, comprising fee based income, trading income, recovery in written-off accounts, and others, declined about 5 per cent yoy to ₹4,462 crore (₹4,703 crore).

Net interest margin improved to 2.82 per cent as at March-end 2022 from 2.76 per cent as at March-end 2021.

Provisions towards non-performing assets (NPAs) declined 52 per cent y-o-y to ₹2,130 crore (₹4,428 crore). Write-back in standard asset provision was at ₹223 crore.

However, provisions towards non-performing investments rose to ₹1,035 crore against ₹244 crore write-back in the year ago period.

Gross NPAs declined to 7.51 per cent of gross advances as at March-end 2022 against 8.93 per cent as at March-end 2021. Net NPAs declined to 2.65 per cent of net NPAs against 3.82 per cent.

Global gross advances increased by 9.77 per cent y-o-y to stand at ₹7,41,147 crore as at March-end 2022.

Domestic gross advances grew by 8.96 per cent yoy. Within this, retail credit growth was at 9.51 per cent; agriculture & allied (12.75 per cent); MSME (9.87 per cent); and Corporate & others (8.27 per cent).

Global deposits were up 7.47 per cent y-o-y to stand at ₹10,86,409 crore as at March-end 2022.

The proportion of low-cost current account, savings account (CASA) deposits increased to 35.88 per cent as at March-end 2022 against 34.33 per cent as at March-end 2021.

The Bank expects to grow its global deposits and advances by 8.50 per cent and 8 per cent, respectively in FY23. Further, it has set a target to bring down the percentage of global GNPAs and NNPAs to 6 per cent and 2 per cent, respectively.