State-owned Canara Bank’s net profit for the first quarter ended June 30, rose 71.79 per cent to ₹2,022 crore compared to ₹1,177 crore in the same period last year.
Net profit margin grew 8.66 per cent against 5.62 per cent last year. The bank announced its guidance for March FY23 to be at 15 per cent.
Rise in income
Its net interest income grew 10.15 per cent to ₹6,784.73 crore against ₹6,159.33 crore in June 2021. Total income rose 11.51 per cent to ₹23,351.96 per cent (₹20,940.28 crore).
“Going forward, in Q2 of FY23 there will be good traction under both the net interest income and non-interest income,” said LV Prabhakar, Managing Director and CEO, Canara Bank.
For the quarter ended in June, Canara Bank’s retail lending portfolio increased 11.56 per cent to ₹ 1,28,615 crore, housing loan portfolio increased 16.03 per cent to ₹75,578 crore and agriculture advances grew 18.42 per cent to ₹1,85,680 crore.
The Bengaluru-based bank saw its asset quality improve as the gross non-performing asset was reduced by 6.98 per cent, a decline of 152 basis points on a YoY basis. The net non-performing asset was down 2.48 per cent, a decline of 98 basis points on a YoY basis.
Its capital adequacy ratio stood (CRAR) stood at 14.91 per cent in Q1, and the bank expects to have a CRAR of more than 15 per cent in the upcoming quarter. “Last week, the bank raised ₹2,000-crore bonds at 8.24 per cent, when required we may raise more bonds in the coming months. Additionally, our net profit has crossed over ₹2,000 crore. All of this will help us have a CRAR of more than 15 per cent,” said Prabhakar.
Canara Bank has 9,732 domestic branches and three overseas branches in London, Dubai, and New York.