K. Satyanarayana Raju
| Photo Credit: Special Arrangement
Canara Bank reported 11.31% year-on-year increase in net profit for the September quarter of FY25 to ₹4,014 crore, increase from ₹3,606 crore in Q2 FY24. The bank’s net interest income improved to ₹9,315 crore, up from ₹8,903 crore in the corresponding quarter a year ago.
During Q2, the bank recovered upto ₹500 crore, a portion of the total ₹11,777 crore it has under NCLT, through liquidation activities and various settlements, said K. Satyanarayana Raju, Managing Director and CEO, Canara Bank in a media conference here on Tuesday.
The bank’s NPA in MSME sector has nearly halved from 14% two years ago to 7.1% in Q2. ‘‘Our underwriting standards are very strong. We hope to stabilise our NPA in MSME to 5% or below 5% in the next one to two years,’‘ he added.
According to Mr. Raju, bank has reduced its risk exposure to micro financing by 50% and also brought down the outstanding in the sector from ₹600 crore to ₹300 crore in the September 30th ended quarter.
Canara Bank earned an interest of ₹29,740.07 crore in the quarter, close to 11% more than the interest it earned, ₹26,837.68 crore, in the corresponding period a year ago.
On asset quality, the bank said, its Gross Non-Performing Assets (GNPA) ratio improved to 3.73% as at September 2024 reduced from 4.14% as at June 2024, 4.76% as at September 2023. Net Non-Performing Assets (NNPA) ratio improved to 0.99% as at September 2024 reduced from 1.24% as at June 2024, 1.41% as at September 2023. Also, Gross NPA Ratio stood at 3.73% improved by 103 bps while Net NPA Ratio stood at 0.99% improved by 42 bps.
The bank’s global business grew 9.42% YoY to ₹23,59,344 crore while global deposits stood at ₹13,47,347 crore, a 9.34% growth. It’s gross advances reached ₹10,11,997 crore, a 9.53% jump. Domestic deposits of the bank stood at ₹12,38,713 crore as at September 2024 with growth of 8.34% while domestic advances (gross) stood at ₹95,4149 crore as at September 2024 grew by 8.64%.
Mr Raju further said the bank has been expanding across the country and was planning to add 250 new branches in the current fiscal, to its total network of 9,658 branches.
Published – October 29, 2024 07:30 pm IST
