Canara Bank, a public sector lender, recently released its financial results for the October-December quarter of the fiscal year 2023-24. The bank’s performance exceeded expectations, with a net profit of Rs 3,656 crore, surpassing the estimated Rs 3,524.5 crore.
Net Profit Growth
The net profit showed a significant increase of 26.87 percent compared to the same period last year, rising from Rs 2,881.52 crore to the current Rs 3,656 crore.
Asset Quality Improvement
Canara Bank demonstrated improvement in asset quality, with the gross non-performing asset (NPA) decreasing from 5.89 percent in the same quarter last year to 4.39 percent. The net NPA also improved from 1.96 percent to 1.32 percent year-on-year.
Stock Performance
The bank’s stock witnessed a decline of 2.22 percent, closing at Rs 448 apiece on the Bombay Stock Exchange (BSE).
Operational Performance
- Net Interest Income (NII): Canara Bank’s NII stood at Rs 9,417 crore, registering a growth of 9.50 percent.
- Net Interest Margin (NIM): The NIM improved to 3.02 percent, an increase of 9 basis points.
Global Business and Deposits
Canara Bank’s global business increased by 9.87 percent year-on-year, reaching Rs 22,13,360 crore as of December 2023. Global deposits stood at Rs 12,62,930 crore, and global advances (gross) were at Rs 9,50,430 crore.
Retail Lending Portfolio
The bank’s retail lending portfolio experienced growth, reaching Rs 1,53,640 crore, a 12.14 percent increase year-on-year. The housing loan portfolio specifically grew by 12.07 percent to Rs 91,800 crore.
Agriculture & Allied Activities
Advances to agriculture and allied activities saw a substantial growth of 19.26 percent year-on-year, reaching Rs 2,42,470 crore as of December 2023.
Branch Network and Global Presence
As of December 31, 2023, Canara Bank operates through 9,585 branches, with 3,095 in rural areas, 2,742 in semi-urban areas, 1,906 in urban areas, and 1,842 in metro locations. The bank also has 10,463 ATMs. Additionally, it maintains overseas branches in London, New York, and Dubai.
Canara Bank’s robust financial performance and strategic growth across various sectors showcase its resilience and positive trajectory in the banking industry.
