canara bank Q1 profit

Canara Bank Q1 Net Profit Rises 11 Per Cent to ₹3,905 Crore

State-owned Canara Bank on Monday posted a net profit of ₹3,905.28 crore in the first quarter of the current financial year, up about 10.5% from ₹3,534 crore in the same quarter a year ago. The profit also rose by 4.0% sequentially over the previous quarter.

Asset Quality: The asset quality of Canara Bank has improved, as the gross non-performing asset ratio now stands at 4.14 percent, as compared to 4.23 percent in the previous quarter and 5.15 percent a year ago. The net NPA ratio, too, eased to 1.24 percent from 1.27 percent in the March quarter and 1.57 percent in the year-ago.

The gross NPAs dropped to ₹40,356.38 crore at the end of the first quarter of FY21, compared to ₹40,604.57 crore in the previous quarter and ₹45,727.37 crore last year, on an overall basis. Net NPAs stood lower at ₹11,701.77 crore compared to ₹11,822.83 crore in the previous quarter, but compared to the same quarter a year ago, net NPAs increased to ₹13,.
The bank’s Provision Coverage Ratio (PCR) improved by 118 basis points to 89.22%. Fresh slippages amounted to ₹3,015 crore in the April-June quarter, slightly lower than the ₹3,188 crore recorded in the same period last year.

Deposits

On a YoY basis, total domestic deposits in the December quarter rose 11.47 percent to Rs 12.31 lakh crore on the back of CASA deposits that grew 4.66 percent to Rs 3.81 lakh crore. During the period, savings account deposits increased 3.62 percent to Rs 3.32 lakh crore, whereas the term deposits grew 14.82 percent to Rs 8.50 lakh crore. Global deposits stood at Rs 13.36 lakh crore against Rs 11.97 lakh crore in the corresponding period of the previous year.

Advances:

The on-the-books loan book at the domestic retail levels has grown 9.17% year-on-year to ₹9.21 lakh crore, driven by the 12.26% rise in RAM––retail, agriculture, and MSME––credit to ₹5.52 lakh crore. Retail advances posted a 23.54% gain to ₹1.76 lakh crore, with advances to agriculture and allied activities growing better by 8.14% and touching ₹2.53 lakh crore. Advances to corporates and others rose by 6.87% to ₹4.24 lakh crore.

Besides, the bank decreased credit to non-banking finance firms by 18.15 percent on an annual basis and by 10.19 percent sequentially to ₹1.19 lakh crore. Additionally, credit to the petroleum, coal products, and nuclear fuels industry was down 11.82 percent from a year ago, while on a quarterly basis, it fell by 3.62 percent. At the consolidated level, gross advances posted an increase of 9.86 percent year-on-year to ₹9.8 lakh crore. These figures drive home the growth Canara Bank has posted despite sector headwinds and improved asset quality.

All this has been reflected in the bank’s latest quarterly results, where most of the signals have emanated from sheet-wise balance, exposure cut downs to high-risk sectors.

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Source: Moneycontrol

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