Canara Bank reports 89% increase in profit | The Financial Express

Canara Bank reports 89% increase in profit

The bank made provisions of Rs 3,637 crore in Q2FY23.

Canara Bank reports 89% increase in profit
The bank posted gross non-performing assets (NPA) ratio at 6.37% as of September 30, lower by 205 bps YoY and 114 bps sequentially.

Public sector lender Canara Bank on Thursday posted a 89% year-on-year jump in its net profit for the quarter ended September 30, to Rs 2,525 crore, despite an 8% increase in its provisions. The bank made provisions of Rs 3,637 crore in Q2FY23. Pre-provisioning operating profit (PPOP) grew by 23% YoY to Rs 6,905 crore, led by a 13% rise in non-interest income, aided by higher recoveries and fee-based income. The bank’s treasury income shrank 57% YoY. Its total non-interest income stood at Rs 4,825 crore during the quarter.

The lender’s net interest margin expanded by 9 basis points (bps) to 2.86% as of September 30, despite a rise in cost of funds, a tad lower than the guidance of 2.90%. Net interest income (NII) grew by 19% YoY to Rs 7,434 crore, led by global and domestic advances growth. The former grew by 20% YoY to Rs 8.3 crore in Q2FY23, while domestic advances grew by 18% to Rs 7.8 crore. The domestic advances were led by corporate loans, which grew by 25% while credit to retail, agriculture and MSME (RAM) sector grew by 16% YoY aided by housing credit.

Also read| Canara Bank Q1 profit jumps 72% on higher income

The bank posted gross non-performing assets (NPA) ratio at 6.37% as of September 30, lower by 205 bps YoY and 114 bps sequentially. The net NPA ratio stood at 2.19%, lower by 102 bps YoY and 46 bps sequentially. The provision coverage ratio stood at 85.36% as on September 30. Fresh slippages stood at Rs 3,523 crore in Q2FY23, lower than the Rs 6,525 crore in the previous year.

Also read| Canara Bank profit rises 72 pc to Rs 2,022 crore on higher interest income, loan growth

The lender’s capital adequacy ratio stood at 16.51% as of September 30, of which tier-I is 13.40%. The bank plans to raise Rs 5,500 crore in FY23 via additional tier-I bonds, of which the lender has raised Rs 4,000 crore so far.

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First published on: 21-10-2022 at 08:18 IST