Canara Bank Q2 net up 11% to ₹4,014 crore

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.