Canara Bank Q1FY25: Profit grows 11% YoY to Rs 3,905 cr; NII grows 6%

Compared to the previous quarter, net profit was up 4 percent.

Bank’s net interest income (NII) grew by 6% YoY to Rs 9,166 crore in the quarter under review, up from Rs 8,666 crore in the previous year.

However, the bank's net interest margins declined to 2.9% in the June 2024 quarter, down from 3.05% in both the same period last year and the previous March quarter.

In Q1FY25, Canara Bank’s the Gross Non-Performing Assets (GNPA) ratio decreased to 4.14% as of June 2024, down from 4.23% in March 2024 and 5.15% in June 2023.

The Net Non-Performing Assets (NNPA) ratio also declined, reaching 1.24% in June 2024, compared to 1.27% in March 2024 and 1.57% in June 2023.

Additionally, the Provision Coverage Ratio (PCR) improved to 89.22% in June 2024, up from 89.10% in March 2024 and 88.04% in June 2023.

In absolute terms, Canara Bank's gross Non-Performing Assets (NPA) amounted to Rs 40,356.38 crore as of June 30, compared to Rs 40,604.57 crore on March 31, and Rs 45,727.37 crore on June 30, 2023.

The net NPA stood at Rs 11,701.77 crore for the April-June quarter, down from Rs 11,822.83 crore in the previous quarter and Rs 13,461.43 crore in the same period last year.

The Provision Coverage Ratio (PCR) improved to 89.22%, an increase of 118 basis points.

In the April-June quarter, Canara Bank reported fresh slippages of Rs 3,015 crore, down from Rs 3,188 crore in the same period the previous year.

Capital to Risk-Weighted Assets Ratio (CRAR) stood at 16.38% as at June 2024 (16.28% as at Mar 2024).

Out of which Tier-I is 14.37% (13.95% as at Mar 2024), CET1 is 12.05% (11.58% as at Mar 2024) and Tier-II is 2.01% (2.33% as at Mar 2024).

The Bank has achieved Targets in Priority Sector at 44.95% and Agricultural Credit at 22.02% of ANBC as at June 2024, as against the norm of 40% and 18% respectively.

Credit to Small and Marginal Farmers stood at 15.58% of ANBC, against the norm of 10.00%.

Credit to Weaker Sections stood at 21.65% of ANBC, against the norm of 12.00%.

Credit to Micro Enterprises stood at 9.92% of ANBC, against the norm of 7.50%.

Credit to Non Corporate Farmers stood at 18.37% of ANBC, against the norm of 13.78%.

In Q1FY25, the bank's total domestic deposits rose by 11.47% year-on-year to Rs 12.31 lakh crore, up from Rs 11.05 lakh crore in the same period last year.

Within this, CASA (Current Account Savings Account) deposits grew by 4.66% to Rs 3.81 lakh crore, with savings accounts contributing Rs 3.32 lakh crore, a 3.62% increase.

Term deposits saw a significant rise of 14.82% year-on-year, reaching Rs 8.50 lakh crore, with Retail Term Deposits accounting for Rs 5.15 lakh crore.

Globally, the bank's deposits amounted to Rs 13.36 lakh crore, an increase of 11.97% year-on-year.

The bank's domestic gross advances grew by 9.17% year-on-year to Rs 9.21 lakh crore, with RAM (Retail, Agriculture, and MSME) credit increasing by 12.26% to Rs 5.52 lakh crore.

Specifically, retail advances rose by 23.54% year-on-year to Rs 1.76 lakh crore. Agriculture and allied advances also increased, growing by 8.14% year-on-year to Rs 2.53 lakh crore.

Advances to corporates and others grew by 6.87% year-on-year to Rs 4.24 lakh crore.

The bank's global gross advances rose by 9.86% year-on-year to Rs 9.8 lakh crore.

Canara Bank reduced its credit exposure to non-banking finance companies by 18.15% year-on-year and 10.19% on a quarterly basis, bringing it down to Rs 1.19 lakh crore.

The bank also decreased its credit to the petroleum, coal products, and nuclear fuels industry by 11.82% year-on-year and 3.62% on a quarterly basis.