Canara Bank showcased a robust financial performance in the December quarter, reporting a notable 27% rise in net profit to ₹3,656 crore, surpassing the CNBC-TV18 poll estimate of ₹3,451 crore. The Net Interest Income (NII) for Q3 stood strong at ₹9,417 crore, indicating a commendable 9.5% increase from the same period in the previous financial year when it was ₹8,600 crore.
The bank’s asset quality exhibited positive trends, with Gross Non-Performing Assets (NPA) at ₹41,722 crore, showcasing a decrease from ₹43,955.6 crore in the previous quarter. Net Non-Performing Assets (NPA) stood at ₹12,176 crore, marking a decline from ₹12,554 crore in the corresponding period last year. While the Gross NPA percentage witnessed a slight increase, reaching 4.9% compared to 4.76% in the previous year, the overall asset quality remained resilient.
Provisions for Q3 were reported at ₹1,899 crore, reflecting a decline from ₹2,609 crore in the previous quarter and ₹3,124 crore on a yearly basis. The provision coverage ratio demonstrated improvement at 89.01%, up from 88.73% in the previous quarter, underscoring the bank’s prudent approach to risk management.
The bank reported a one-off gain of ₹1,402 crore, marking a substantial increase from ₹219 crore in the same period last year, contributing significantly to the overall positive financial outcome.
Canara Bank’s retail lending portfolio experienced a robust growth, reaching ₹1,53,640 crore, showing an impressive 12.14% increase year-on-year (YoY). The housing loan portfolio expanded by 12.07% YoY, reaching ₹91,800 crore. Advances to agriculture and allied activities saw a significant surge of 19.26% YoY, totaling ₹2,42,470 crore as of December 2023.
As of December 31, 2023, the bank operates through an extensive network of 9,585 branches, including 3,095 rural, 2,742 semi-urban, 1,906 urban, and 1,842 metro branches, in addition to managing 10,463 ATMs. Furthermore, the bank has a global presence with three overseas branches located in London, New York, and Dubai.
The impressive Q3 performance positions Canara Bank favorably in the banking sector, showcasing resilience, prudent financial management, and strategic growth initiatives. Investors are keenly observing the bank’s trajectory as it continues to navigate the dynamic financial landscape.