Canara Bank Q2 result: Net profit rises 11% YoY to ₹4,014 crore; NPA, slippage ratio improve

Canara Bank Q2 result: Public sector lender Canara Bank on Tuesday, October 29, reported an 11.32 per cent year-on-year (YoY) rise in standalone net profit for the September quarter of the current financial year (Q2FY25) to ₹4,014.53 crore. In the corresponding quarter of the previous financial year, the company's profit stood at ₹3,606.14 crore.

The bank's total income for the quarter rose 10.32 per cent to ₹34,721.07 crore from ₹31,472.18 crore in the same period last year.

The bank earned an interest of ₹29,740.07 crore in the quarter under review, which was almost 11 per cent higher than the interest earned of ₹26,837.68 crore in the same quarter of the previous financial year.

The bank registered remarkable improvement on the asset quality front as the gross NPA (GNPA) ratio improved by 103 bps during the quarter, coming at 3.73 per cent. 

The net NPA ratio stood at 0.99 per cent, improving by 42 bps from 1.41 per cent as of the September 2023 quarter.

According to the bank's exchange filing, its provision coverage ratio (PCR) improved by 216 bps to 90.89 per cent for the quarter, while slippage ratio, at 1 per cent, improved by 32 bps.

The bank's global business increased by 9.42 per cent YoY to ₹23,59,344 crore by the end of September 2024.

Domestic deposits of the bank grew 8.34 per cent YoY to ₹12,38,713 crore in the quarter under review. On the other hand, gross domestic advances stood at ₹9,54,149 crore, up 8.64 per cent YoY.

RAM ((retail, agriculture and MSME)) credit increased by 11.54 per cent YoY to ₹5,76,589 crore, while retail lending portfolio increased by 31.27 per cent YoY to ₹1,94,556 crore as of September 2024. The housing loan portfolio increased by 12.29 per cent YoY to ₹99,452 crore.

Canara Bank said that it has 9,658 branches, out of which 3,115 are rural, 2,778 semi-urban, 1,918 urban, and 1,847 metro, along with 9,881 ATMs as of September 30, 2024. The bank also has four overseas branches in London, New York, Dubai and IBU Gift City.

After the Q2 result announcements, Canara Bank share price traded 2.48 per cent higher at ₹103.15 around 1:30 pm.

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