Canara Bank Q3 profits up 88%

With growth in CASA, retail deposits and cash recovery, Canara Bank has posted 88.54 per cent higher profits on a consolidated basis for the third quarter of 2020-21. The bank’s profits stood at ₹749.73 crore against ₹397.65 crore posted in the same period last year.

The total income of the bank grew by 57.68 per cent at ₹24,490.63 crore against ₹15,531.80 crore recorded last year. EPS for the quarter stood at ₹5.01 against ₹5.09 posted last year.

Commenting on the Q3 performance, LV Prabhakar, the bank’s MD and CEO, said: “We saw growth in CASA deposits at 14.9 percent, retail term deposits grew by 18.2 per cent, credit – both retail and housing loans – saw a rise of 9 per cent and 13.3 per cent, respectively. Cash recovery in Q3 was at ₹2,963 crore.”

During Q3, the cost of deposit came down to 4.61 per cent (last year 5.46 per cent). Cost of funds also saw a downward trend at 4.20 per cent (last year 5.07 per cent). Yield on advances stood at 7.98 per cent (last year 8.26 per cent), yield on funds was 6.46 per cent (last year 7.09 per cent), yield on investments 6.85 per cent (7.52 percent) and NIM stood at 2.80 per cent (2.50 per cent).

The bank’s net-interest income (NII) grew by 21.47 per cent to ₹6,081 crore, while non-interest income increased by 28.64 per cent.

Canara Bank’s gross NPA stood at ₹49,988.56 crore (last year’s ₹36,860.49 crore), Net NPA stood at ₹16,796.15 crore (₹21,377.86 crore) and percentage of gross NPA stood at 7.48 per cent (8.40 per cent). Percentage of net NPA stood at 2.65 per cent (5.05 per cent). Return on assets annualised is 0.26 per cent (0.22 per cent).