Canara Bank posted an 11.32% increase in its standalone net profit for the September quarter to Rs 4,015 crore, compared to Rs 3,606.14 crore a year ago. This came on the back of higher interest income and lower bad loan accretion.

Total income grew 10.32% to Rs 34,721.07 crore in the fiscal second quarter ended 30 September 2024, from Rs 31,472.18 crore in the same period last year. Sequentially, it was up 2.06%.

The state-owned lender earned an interest of Rs 29,740.07 crore in Q2 of FY25, up 11% from Rs 26,837.68 crore in the same quarter of the previous financial year.

The interest expended stood at Rs 20,425 crore, up 14% from Rs 17,935 crore a year ago.

NIM

The bank’s net interest margin (NIM) reduced to 2.88% at the end of Q2, from 3.02% in Q2FY24 and 2.9% the previous quarter.

Asset quality

The bank’s asset quality improved, with the gross non-performing assets (NPA) ratio declining to 3.73% as of September 2024, from 4.14% a quarter ago and 4.76% a year ago. 

Net NPA ratio also fell to 0.99% as of September 2024, from 1.24% as of June 2024 and 1.41% as of September 2023.

Provision coverage ratio (PCR) stood at 90.89% as of September 2024, compared to 89.22% a quarter ago and 88.73% a year ago.

Slippage ratio stood at 1%, improved by 32 basis points.

Global business

The bank's global business stood at Rs 23,59,344 crore as of 30 September 2024, up 9.42% on a year-on-year basis. 

Deposits

Within this, global deposits touched Rs 13,47,347 crore as of 30 September 2024, up 9.34% from the year-ago period. Domestic deposits rose 8.34% YoY to Rs 12,38,713 crore in the quarter under review.

Loan book

Gross advances stood at Rs 10,11,997 crore, up 9.53% a year ago. Gross domestic advances rose 8.64% YoY to Rs 9,54,149 crore.

The retail lending portfolio jumped 31.27% YoY to Rs 1,94,556 crore as of September 2024, while the housing loan portfolio rose by 12.3% YoY to Rs 99,452 crore.

RAM ((retail, agriculture and MSME)) credit grew 11.54% YoY to Rs 5,76,589 crore. The housing loan portfolio rose 12.29% YoY to Rs 99,452 crore.

The bank's CRAR stood at 16.57% in Q2 FY25, compared to 16.38% in Q1 FY25. Of this, Tier-I capital was at 14.64%, up from 14.37% at the end of the June 2024 quarter, while Tier-II capital stood at 1.93%, down from 2.01% as of June 2024.

Canara Bank has 9,658 branches at the end of Q2 FY25, out of which 3,115 are rural, 2,778 semi-urban, 1,918 urban and 1,847 metro, along with 9,881 ATMs. The bank also operates four overseas branches in London, New York, Dubai and IBU Gift City.