Canara Bank Q1 earnings 2024

Canara Bank Q1 Earnings: Net Profit Rises by 10.5% YoY, Gross NPA Ratio Improves to 4.14%

State-owned lender Canara Bank reported a robust performance in the first quarter of the current financial year, showcasing significant improvements in net profit and asset quality. On July 25, Canara Bank announced a 10.5% year-on-year (YoY) increase in net profit, amounting to Rs 3,905.28 crore. Sequentially, net profit rose by 4%.

Asset Quality

Canara Bank’s gross non-performing asset (NPA) ratio improved to 4.14% in the June quarter, down from 4.23% in the previous quarter and 5.15% in the same period last year. The net NPA ratio also declined to 1.24% from 1.27% in the March quarter and 1.57% in Q1FY24.

Key Figures

Gross NPA: Rs 40,356.38 crore as of June 30, compared to Rs 40,604.57 crore as of March 31 and Rs 45,727.37 crore as of June 30, 2023.

Net NPA: Rs 11,701.77 crore in Q1FY24, compared to Rs 11,822.83 crore in the previous quarter and Rs 13,461.43 crore in the same period last year.

Provision Coverage Ratio (PCR): Improved by 118 basis points (bps) to 89.22%.

In the April-June quarter, fresh slippages amounted to Rs 3,015 crore, down from Rs 3,188 crore in the year-ago period.

Deposits

In Q1FY24, Canara Bank’s total domestic deposits increased by 11.47% YoY to Rs 12.31 lakh crore, up from Rs 11.05 lakh crore in the same period last year.

Breakdown of Deposits

CASA Deposits: Grew by 4.66% YoY to Rs 3.81 lakh crore. Savings accounts within this category rose to Rs 3.32 lakh crore, up 3.62%.

Term Deposits: Increased by 14.82% YoY to Rs 8.50 lakh crore. Retail Term Deposits stood at Rs 5.15 lakh crore.

Globally, Canara Bank’s deposits reached Rs 13.36 lakh crore, reflecting an 11.97% YoY increase.

Advances

Canara Bank’s domestic gross advances grew by 9.17% YoY to Rs 9.21 lakh crore. RAM (Retail, Agriculture, and MSME) credit increased by 12.26% YoY to Rs 5.52 lakh crore.

RAM Category Breakdown

Retail Advances: Grew by 23.54% YoY to Rs 1.76 lakh crore in the April-June quarter, up from Rs 1.43 lakh crore in the year-ago period.

Agriculture and Allied Advances: Increased by 8.14% YoY to Rs 2.53 lakh crore.

Advances to corporates and others grew by 6.87% YoY to Rs 4.24 lakh crore. The bank’s global gross advances rose by 9.86% YoY to Rs 9.8 lakh crore in the April-June quarter.

Strategic Adjustments

In the reporting quarter, Canara Bank reduced its credit exposure to non-banking finance companies by 18.15% YoY and 10.19% on a quarterly basis to Rs 1.19 lakh crore.Additionally, credit to the petroleum, coal products, and nuclear fuels industry was reduced by 11.82% YoY and 3.62% on a quarterly basis.

Conclusion

Canara Bank’s Q1FY24 performance highlights its strong financial health and strategic focus on improving asset quality and growing its deposit and advance portfolios.Canara Bank Q1 earnings 2024,The positive trends in net profit and asset quality underscore the bank’s resilience and growth potential in the Indian banking sector.

FAQs:

Q1: What was Canara Bank’s net profit in Q1FY24?

A: Canara Bank reported a net profit of Rs 3,905.28 crore in Q1FY24, a 10.5% YoY increase.

Q2: How has Canara Bank’s gross NPA ratio changed?

A: The gross NPA ratio improved to 4.14% in the June quarter, down from 5.15% in the year-ago period.

Q3: What is the growth rate of Canara Bank’s total domestic deposits?

A: Total domestic deposits grew by 11.47% YoY to Rs 12.31 lakh crore in Q1FY24.

Q4: How did Canara Bank’s RAM credit perform in the April-June quarter?

A: RAM credit increased by 12.26% YoY to Rs 5.52 lakh crore in Q1FY24.

Q5: What strategic adjustments did Canara Bank make in Q1FY24?

A: Canara Bank reduced its credit exposure to non-banking finance companies by 18.15% YoY and to the petroleum, coal products, and nuclear fuels industry by 11.82% YoY.