Canara Bank Q2 FY25 Earnings: Net Profit Up 11%, Asset Quality Shines

Public sector bank Canara Bank has reported solid growth for the second quarter of the fiscal year 2024-25, reflecting improved profitability, higher income, and better asset quality. Here’s a breakdown of the key highlights:

Rise in Net Profit

For the September quarter of FY25 earnings, Canara Bank posted an 11.32% year-on-year (YoY) increase in standalone net profit, reaching ₹4,014.53 crore compared to ₹3,606.14 crore in the same period last year.

Total Income and Interest Earnings

The bank’s total income rose by 10.32% YoY, amounting to ₹34,721.07 crore, up from ₹31,472.18 crore a year earlier. Interest income also saw a boost, growing nearly 11% to ₹29,740.07 crore from ₹26,837.68 crore in the previous year’s quarter.

Enhanced Asset Quality

Canara Bank’s asset quality improved significantly, with the Gross Non-Performing Asset (GNPA) ratio dropping by 103 basis points (bps) to 3.73%. The Net NPA ratio improved to 0.99%, down by 42 bps from 1.41% YoY, indicating healthier loan performance.

Strengthened Provision Coverage

The bank’s provision coverage ratio (PCR), which reflects the coverage of bad loans, improved by 216 bps to 90.89%. The slippage ratio also improved by 32 bps to 1%, showcasing Canara Bank’s proactive risk management.

Growth in Global and Domestic Business

Canara Bank’s global business rose 9.42% YoY, reaching ₹23,59,344 crore by September 2024. Domestic deposits grew by 8.34% to ₹12,38,713 crore, while gross domestic advances increased by 8.64% to ₹9,54,149 crore.

Strong Growth in RAM and Retail Lending

The bank’s RAM (retail, agriculture, and MSME) credit expanded by 11.54% YoY to ₹5,76,589 crore. Within this segment, the retail lending portfolio surged 31.27% YoY to ₹1,94,556 crore. Housing loans alone grew by 12.29% to ₹99,452 crore.

Expanding Network of Branches and ATMs

Canara Bank operates a wide network, with 9,658 branches as of September 2024, categorised by location as follows:

• Rural: 3,115 branches
• Semi-Urban: 2,778 branches
• Urban: 1,918 branches
• Metro: 1,847 branches

Additionally, the bank maintains 9,881 ATMs and has a presence overseas, with branches in London, New York, Dubai, and IBU Gift City.

On October 30, 2024, Canara Bank Limited’s share price opened at ₹103.50 and touched the day high of ₹104.69  at 10:22 AM on NSE. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.