Canara Bank Q3 Net profit rises 27%

 

Public sector lender Canara Bank on January 24 reported a net profit of Rs 3656 crore for the October-December quarter of financial year (FY) 2023-24 beating the estimates of Rs. 3,524.5 crore.

The lender marks a 26.87 percent jump in net profit as compared to Rs 2881.52 crore clocked in the year-ago period.

The bank's gross non-performing asset (NPA) stood at 4.39 percent, down from 5.89 percent recorded in the same quarter last year. On the other hand, net NPA for the quarter stood at 1.32 percent, improving from 1.96 percent on a year-on-year basis.

Shares of the lender closed for trading nearly 2.22 percent down at Rs 448 apiece on BSE.

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Canara Bank Q2 Net profit zooms 43% YoY

 

Public sector lender Canara Bank on October 26 reported a net profit of Rs 3,606 crore for the July-September quarter of FY24, up 43 percent from the year-ago period.

The lender's net interest income (NII) came in at Rs 8,903 crore, 19 percent higher from the the corresponding quarter of the previous fiscal.

The bank's gross non-performing asset (NPA) stood at 4.76 percent, down from 6.37 percent in year-ago period. Net NPA for the quarter improved to 1.41 percent from 2.19 percent in the year-ago period.

Deposit of the bank stood at Rs 11.43 lakh crore growing by 8.22 percent and domestic advances stood at Rs 8.78 lakh crore growing by 12.59 percent.

The lender's RAM credit grew by 13.63 percent to Rs 5.16 lakh crore and constitutes 56 percent of the total advances. Retail credit grew by 10.56 percent with housing loan growth at 12.32 percent and education Loan grew by 14.68 percent whereas vehicle loan grew by 9.29 percent.

The bank's retail portfolio increased to Rs 1.48 lakh crore and grew by 10.56 percent. Housing loan portfolio increased by 12.32 percent to Rs 88,564 crore and advances to agriculture grew by 20.54 percent to Rs 2.36 lakh crore.

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Canara Bank Q1 results: Net profit jumps 75% YoY ; asset quality improves

Canara Bank on July 24 reported a 74.8 percent year-on-year (YoY) rise in profit after tax at Rs 3,534.84 crore in the first quarter of the current financial year, boosted by an increase in net interest income and improvement in interest margins and asset quality.

The state-owned lender reported a net profit of Rs 2,022.03 crore in the year-ago period.

The Bengaluru-headquartered lender's assets quality improved in the June quarter, with gross non-performing assets (NPAs) ratio at 5.15 percent against 5.35 percent in the previous quarter and 6.98 percent in the year-ago period.

The net NPA ratio stood at 1.57 percent, better than 1.73 percent in the previous quarter and 2.48 percent in the year-ago period.

The improvement in asset quality is beneficial to a bank as fewer risky assets tend to bring down the outstanding risk-weighted assets, saving the capital for the lender.

In absolute terms, the bank's gross NPA stood at Rs 45,727 crore as on June 30, against Rs 54,734 crore in the year-ago period. The net NPA too was down at Rs 13,461 crore from Rs 18,505 crore.

In the reporting quarter, the net interest income, the difference between the interest earned on loans and paid to depositors, rose 27.72 percent on-year to Rs 8,666 crore.

The total interest income of the bank was Rs 25,004 crore in the April-June quarter, up from Rs 18,177 crore in a year ago period.

The net interest margin, an important profitability marker, was at 3.05 percent, up from 2.95 percent in the previous quarter and 2.78 percent in a year-ago period.

The global deposits of the bank rose 6.65 percent on-year to Rs 11.92 lakh crore, while domestic deposits were up 4.9 percent on-year to Rs 11.05 lakh crore.

in April-June, term deposits of state-owned lender rose 6.98 percent to Rs 7.04 lakh crore.

On the advances front, global gross advances surged 13.27 percent on-year to Rs 8.88 lakh crore and domestic gross advances rose 12.69 percent on-year to Rs 8.18 lakh crore.

In April-June, Canara Bank reported a 71.01 percent on-year fall in its treasury income to Rs 536 crore. In treasury income, profit on exchange transactions halved 75.21 percent on-year to Rs 236 crore and profit on sale of investment fell 66.93 percent on-year to Rs 294 crore, according to the investors presentation.

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Canara Bank Q4 Results: Net profit zooms 90% YoY

 

Canara Bank on Monday reported March quarter net profit at Rs 3,175 crore, up 90% year-on-year (YoY). The figure stood at Rs 1,666 crore in the same quarter last year.

Net interest income (NII), the difference between interest earned and interest expended, grew 23% YoY to Rs 8,616 crore for the fourth quarter under review. It was Rs 7,006 crore in the corresponding quarter of last year.

The lender's operating profit stood at Rs 7,252 crore during the March quarter, registering a growth of 17% YoY.

Canara Bank improved its asset quality over a year ago period as gross non-performing assets (GNPA) ratio reduced to 5.35% in the March quarter, down from 5.89% at the end of March 2022.

Net non-performing assets (NNPA) ratio has also declined to 1.73% as of March 2023 from 2.65% as of March 2022.

The bank's provision coverage ratio (PCR) stood at 87.31% at the end of March quarter as against 84.17% in the last year quarter.

On the operational front, the global business increased by 12% YoY to Rs 20.41 lakh crore as at March 2023 with global deposits at Rs 11.79 lakh crore.

Domestic deposits of the bank stood at Rs 10.94 lakh crore at the end of the quarter, showing a growth of 6% YoY.

While the retail lending portfolio increased by 11% YoY to Rs 1.4 lakh crore, housing loans jumped 14% YoY to Rs 84,364 crore.

The bank's capital adequacy was at 16.68% as of March 2023, including tier-I of 13.78%.

The lender's Board has recommended a dividend of Rs 12 per equity share (i.e., 120%) of face value of Rs 10 each to the shareholders for the financial year 2022-23.

The lender has 9,706 branches as of the March quarter, out of which 3048 are rural, 2742 semi-urban, 1991 urban and 1925 metro along with 10726 ATMs.

Considering the bank’s performance, the board has decided to pay 15 days' salary as performance-linked incentive (PLI) to the employees.

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Canara Bank Q1 net profit up 71.8% YoY on higher interest income

Canara Bank’s net profit grew by 71.8 per cent year on year (YoY) to Rs 2,022 crore in the quarter ended June (Q1FY23) on the back of a rise in its net interest income (NII) and other income.

The Bengaluru-based public sector lender had posted a net profit of Rs 1,177 crore during the same period last year (Q1FY22). Sequentially, its net profit rose 21.4 per cent from Rs 1,666 crore in Q4FY22.

Its net interest income (NII) was up 10.15 per cent in Q1FY23 to Rs 6,785 crore from Rs 6,160 crore in Q1FY22. However, it was down 3.14 per cent sequentially, from Rs 7,005 crore in the March 2022 quarter. Its NIM improved to 2.78 per cent in Q1FY23 from 2.71 per cent a year ago. However, it fell from 2.82 per cent in March 2022.

The bank said in a filing with the BSE that its NIM was expected to be about 3.0 per cent in the current financial year.

Its non-interest income rose 24.55 per cent YoY to Rs 5,175 crore in Q1FY23, from Rs 4,155 crore in Q1FY22. It also rose sequentially from Rs 4,462 crore in Q4FY22.

Despite hardening of bond yields, the treasury income, which is part of other income, rose by 46.17 per cent YoY to Rs 1,849 crore in Q1Fy23 from Rs 1,265 crore in Q1Fy22. Sequentially, the treasury income was up 32.64 per cent from Rs 1,394 crore in March 2022.

The bank’s asset quality profile improved with gross non-performing assets (GNPAs) at 6.98 per cent till June 2022 from 8.5 per cent in the year-ago quarter. Net NPAs dipped to 2.48 per cent from 3.46 per cent a year ago.

NPA provisions rose to Rs 2,673 crore in Q1FY23 from Rs 2,334 crore in Q1FY22. The provision coverage ratio rose to 84.51 per cent for the quarter under review from 81.18 per cent a year ago.

The bank’s loan book grew 14.47 per cent YoY, on par with the rate at which the banking system’s loan book expanded (14.4 per cent YoY) in June 2022. The outstanding advances stood at Rs 7.83 trillion as of June 2022.

The deposits grew by 9.42 per cent YoY to Rs 11.18 trillion in June 2022. The credit-to-deposit ratio was 70.09 per cent at the end of June 2022 up from 67 per cent a year ago.

The bank’s total capital adequacy ratio (CAR) stood at 14.91 per cent in June 2022, up from 13.36 per cent in June 2021.

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Six Indian banks sue GVK for Rs 12,114 crore: Report

Six Indian banks are reportedly suing the GVK Group for $1.5 billion or Rs 12,114 crore, according to the Times of India. The six banks include Bank of Baroda, Bank of India, Canara Bank , Icici Bank , Indian Overseas Bank, and Axis Bank.

According to the report, GVK defaulted on a $1-billion loan and a $35-million letter of credit facility given by banks in 2011, and a $160-million loan lent in 2014.

GVK Coal Developers (Singapore) and nine other GVK Group companies are being sued in the case which opens Monday.

As per the banks, GVK failed to make repayments as they fell due and failed to obtain a mining lease in the Alpha project in Queensland, Australia by December 31, 2012, which was a project milestone that had to be satisfied. The banks reportedly asked GVK in November 2020 to cancel the agreement and requested repayment. But neither GVK nor its guarantors has paid any of the sums owed, the banks claimed.

On the other hand, GVK argued that "the loans was to provide part funding for the acquisition of the Hancock companies in Australia to develop their assets — including the Alpha project — into working coal mines".

“The deterioration in the market for coal, the lack of third-party investment, legal challenges to the mining projects in the courts of Queensland, meant that very little progress was made to develop the mining assets,” GVK states. GVK states it could not obtain the mining lease owing to litigation by environmental groups but denies this was a “default”.

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Canara Bank Q4 Net profit more than doubles

 

Canara Bank on Friday reported a 65 percent jump in its standalone net profit at Rs 1,666.22 crore for the quarter ended March 2022.

The Bengaluru-headquartered bank had posted a net profit of Rs 1,010.87 crore in the same quarter a year ago.

Total income of the bank in the January-March period of 2021-22 rose to Rs 22,323.11 crore, from Rs 21,040.63 crore in the same period of 2020-21, Canara Bank said in a regulatory filing.

On the asset quality front, the bank's gross non-performing assets (NPAs) or bad loans fell to 7.51 percent of the gross advances at the end of March 2022, as against 8.93 percent at the end of March 2021.

In value terms, the gross NPAs were worth Rs 55,651.58 crore, down from Rs 60,287.84 crore.

Net NPAs also got better at 2.65 percent (Rs 18,668.02 crore) in the quarter under review, from 3.82 percent (Rs 24,442.07 crore).

Provisions and contingencies for the quarter were higher at Rs 3,708.68 crore, as against Rs 3,652.18 crore put aside for the year-ago period. Of this, the provision for bad loans stood at Rs 2,129.73 crore for Q4FY22.

For full-year FY22, the bank reported a more than doubling of its standalone net profit at Rs 5,678.42 crore, as against Rs 2,557.58 crore in FY21.

Total income during the year grew to Rs 85,907.15 crore, from Rs 84,204.78 crore.

The board of the bank has recommended a dividend of Rs 6.50 per equity share for the year 2021-22, the lender said. It is subject to the approval of shareholders at the bank's ensuing annual general meeting.

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Canara Bank Q3 Net profit jumps over two-fold

 A fall in total provisions and recovery from bad loans helped state-owned Canara Bank more than double its net profit to Rs 1502 crore for the December quarter even as provision toward fresh bad debt rose marginally.

The bank reported a net profit at Rs 696 crore in the year ago period.

Net interest margin, a key profitability parameter, rose to 2.83 per cent for the December quarter from 2.72 per cent in the year ago period. The bank's net interest income rose 14 per cent year-on-year at Rs 6,946 crore.

Managing director LV Prabhakar sounded confident on bettering asset quality going forward as stressed loans account for merely 1.76 per cent of total portfolio. Stressed loans had accounted for 3.63 per cent of the total portfolio in the year-ago period.

Its asset quality deteriorated when compared to the December 2020 quarter but improved sequentially. Gross non-performing assets (GNPA) ratio was at 7.8 per cent, as compared with 7.46 per cent a year back. Gross NPA was 8.42 per cent at the end of September. Net NPA ratio was at 2.86 per cent against 2.64 per cent at the end of December 2020 and 3.21 per cent as on September 20, 2021.

The bank recovered Rs 2,784 crore in the December quarter from bad loans as well as written off accounts, as compared with Rs 2,893 crore in the year back period.

The bank's operating profit rose 10 per cent at Rs 5,803 crore against Rs 5,267 crore over the same period while total provision dipped 47 per cent at Rs 2,245 crore from Rs 4,210 crore helping the sharp rise in net profit. Provisions to cover bad loans were Rs 2,705 crore against Rs 2658 crore in the corresponding quarter in 2020.

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