State-owned Canara Bank reported an 18% rise in its net profit to ₹3,757 crore during the fourth quarter ended March 2024. This is an improvement from the net profit of ₹3,175 crore earned in the year-ago period. The bank’s total income also increased to ₹34,025 crore during the quarter, compared to ₹28,685 crore in the same period last year. Interest income grew to ₹28,807 crore during the period under review from ₹23,910 crore in the corresponding quarter a year ago.
Dividend Recommendation and Approval
Canara Bank’s board has recommended a dividend of ₹16.10 per equity share (161% of face value of ₹10 each) to the shareholders for the financial year 2023-24. This recommendation is subject to approval at the ensuing Annual General Meeting.
Asset Quality Improvement
In terms of asset quality, Canara Bank’s Gross Non-Performing Assets (NPAs) decreased to 4.23% of gross advances as of March 31, 2024, compared to 5.35% at the end of March 2023. Net NPAs also decreased to 1.27% of advances from 1.73% at the end of 2023. As a result, the provision for bad loans declined to ₹2,280 crore, compared to ₹2,399 crore in the same quarter a year ago.
Capital Adequacy Ratio
Canara Bank’s Capital Adequacy Ratio (CRAR) marginally declined to 16.28% as of March 31, 2024, compared to 16.68% on March 31, 2023. The bank’s Tier 1 ratio stood at 11.58% as of March 31, 2024.
These financial results indicate a positive performance for Canara Bank in the fourth quarter of the financial year 2023-24, with an increase in net profit, total income, and improvement in asset quality.
