Comments
Canara Bank reported a 18.33 per cent surge in its net profit, reaching ₹3,757.23 crore in the fourth quarter of FY2023-24, as against 3,175 crore reported in the corresponding quarter of FY23. During Q4-FY24, its net interest income stood at ₹9,580 crore (₹8,616 crore), marking a 11.18 per cent increase.
For the full FY24, the bank saw its net profit rise 37 per cent to ₹14,554 crore (₹10,604 crore).
The bank’s board recommended a dividend of ₹16.10 per equity share (that is 161 per cent) of face value of ₹10 each to the shareholders for 2023-24, subject to approval at the ensuing Annual General Meeting.
In terms of asset quality, the bank’s gross non-performing assets (NPAs) decreased to 4.23 per cent of gross advances as of March 31, 2024, down from 5.35 per cent at the end of March 2023. Consequently, the provision for non-performing loans decreased to ₹2,280 crore (₹2,399 crore).
Sharing the outlook for asset quality, K Satyanarayana Raju, MD and CEO, Canara Bank, said gross NPA should come down to 3.25 per cent, while net NPA is expected to touch 1 per cent by FY25-end. While the bank’s net interest margin (NIM) improved to 3.05 per cent (2.95 per cent), he said that NIM would be in the 2.95-3 per cent range in FY25, given the prevailing high interest rate.
In FY24, Provision for bad loans declined to ₹2,280 crore (₹2,399 crore); provision coverage ratio (PCR) stood at 89.10 per cent as of March 2024 (87.31 per cent).
Business growth
Global business increased 11.31 per cent year on year (y-o-y) to ₹22,72,968 crore as of March 2024 with global deposits at ₹13,12,366 crore - 11.29 per cent ) and global advance (gross) at ₹9,60,602 crore - 11.34 per cent.
Domestic deposits stood at ₹12,14,951 crore with a growth of 10.98 per cent.
Domestic advances (gross) stood at ₹9,08,182 crore growing at 11.06 per cent.
Retail lending portfolio increased 11.68 per cent to ₹1,56,414 crore, and housing loan portfolio increased 10.81 per cent to ₹93,482 crore.
Advances to agriculture and allied sector grew 18.69 per cent to ₹2,53,206 crore.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.