State-owned Canara Bank reported a 72 per cent rise in its standalone profit after tax at Rs 2,022 crore in the April-June quarter of FY23, helped by healthy credit growth and interest income.
In the corresponding quarter of the previous fiscal, its standalone Profit After Tax ((PAT) stood at Rs 1,177 crore.
”Besides higher growth in Net Interest Income (NII), our non-interest income also rose by 25 per cent. Provisions were under control and credit growth was also healthy during the quarter,” the bank’s managing director and chief executive officer L V Prabhakar told reporters.
Net Interest Income (NII) grew by 10.15 per cent to Rs 6,785 crore as against Rs 6,160 crore in the year-ago period.
Non-interest income jumped by 24.55 per cent to Rs 5,175 crore as against Rs 4,155 crore a year ago.
Net Interest Margin (NIM) stood at 2.78 per cent compared to 2.71 per cent in the same quarter of the previous fiscal. Prabhakar expects NIM to reach 2.90 per cent in the current fiscal.
Gross Non-Performing Assets (GNPAs) ratio stood at 6.98 per cent as against 8.50 per cent. Net NPA ratio stood at 2.48 per cent compared to 3.46 per cent.
Fresh slippages in the quarter stood at Rs 3,606 crore. Cash recoveries during the quarter stood at Rs 1,886 crore and recoveries in written-off account were at Rs 711 crore.
The lender is targeting recoveries of Rs 15,000 crore in the current fiscal.
It has identified Rs 2,300 crore of bad loans to be transferred to the National Asset Reconstruction Company Ltd (NARCL), Prabhakar said.
Total provisions grew by 6.51 per cent to Rs 4,584 crore from Rs 4,304 crore.
Capital to Risk (Weighted) Assets Ratio (CRAR) stood at 14.91 per cent as in June 2022, out of which, tier-I was at 12.13 per cent, CET1 at 10.49 per cent and tier-II at 2.78 per cent.
The bank has already got the board approval to raise Rs 5,500 crore from AT-1 bonds and Rs 3,500 crore through tier II bonds in FY23.
Gross domestic advances of the bank grew by 13.14 per cent to Rs 7,48,140 crore and deposits rose by 8.49 per cent to Rs 10,52,907 crore.
On Monday, the bank’s scrip closed at Rs 224.70 apiece on BSE, down 1.88 per cent from its previous close.
