Canara Bank Q2 Results: Net Profit Jumps 42.81% YoY To Rs 3,606 Cr, NII Grew By 19.76%

Canara Bank released its financial results for the second quarter and half-year ended September 30, 2023, on Thursday. The bank said its net profit for September 2023 stood at Rs 3,606 Cr against Rs 2,525 Cr for September 2022 while its operating profit stood at Rs 7,616 Cr, which grew by 10.30% (yoy) in Q2FY24.

Its net interest income climbed by 19.76% to Rs 8,903 Cr, while its net interest margin improved by 19 basis points to 3.02%.

The bank reported that its Cost to Income Ratio dropped by 53 basis points to 43.68% in the quarter under review. Canara Bank reports that in Q2FY24, its Net NPA Ratio was 1.41%, down 78 basis points, while its Gross NPA Ratio was 4.76%, down 161 basis points. The bank's provision coverage ratio (PCR) climbed by 337 basis points to 88.73% as of September 2023. According to the bank, its Return on Equity improved to 22.51% for Q2FY24 from 17.37% for Q2FY23, and its Return on Assets rose to 1.01% for Q2FY24 from 0.71% for Q2FY23.

According to the bank, its domestic deposits grew by 8.22% (year on year) to Rs 11,43,394 Cr as of September 2023, while its domestic advances (gross) jumped by 12.59% (y.o.y.) to Rs 8,78,256 Cr. In September 2023, the bank's Gross Non-Performing Assets (GNPA) ratio was 4.76%, compared to 5.15% in the June 2023 quarter and 6.37% in September 2022. Meanwhile, the Net Non-Performing Assets (NNPA) ratio was 1.41% in Q2FY24 and compared to 1.57% in Q1FY24 and 2.19% in Q2FY23.

As of September 2023, the bank had surpassed its targets in the Priority Sector (45.51%) and Agricultural Credit (21.39%) of ANBC, compared to the industry norms of 40% and 18%, respectively. As of September 2023, its global business was valued at Rs 21,56,181 Cr, or a growth of 10.12% (y.o.y). Global deposits were valued at Rs 12,32,215 Cr, or a growth of 8.66% (y.o.y), and global advance (gross) was valued at Rs 9,23,966 Cr, or up by 12.11% (y.o.y).

According to the bank, from 85.36% in September 2022 to 88.73% in September 2023, its Provision Coverage Ratio (PCR) grew. As of September 30, 2023, the bank has 9518 domestic branches, including 10553 ATMs and 3059 rural, 2717 semi-urban, 1895 urban, and 1847 metro branches. In addition, the bank has four overseas branches: one each in Gift City (Gandhinagar), Dubai, New York, and London.