Canara Bank's Q2FY23 net profit soars 89 pc YoY to Rs 2,525 cr; NII surges 18.5 pc

The bank's Net-Interest Income (NII), a significant indicator of profitability, grew by 18.51 percent year-on-year (Y-o-Y) to Rs 7,434 crore compared to Rs 6,273 crore in the year-ago period.

Its Operating Profit increased by 23.22 percent at Rs 6,905 crore in the quarter under review as against Rs 5,604 crore in the same period in FY22.

The bank's Non-Interest Income grew by 13.05 percent to Rs 4,825 crore during the second quarter of FY23.

Fee-based income grew by 17.98 percent to Rs 1,726 crore compared to Rs 1,463 in the corresponding quarter of FY22.

Cost to Income Ratio went down by 316 bps, the bank said.

Its Global Business grew by 13.89 percent y-o-y in the last quarter to Rs 19,58,111 crore with Global Deposits at Rs 11,33,964 crore, a 9.82 percent y-o-y growth and Global Advance (gross) at Rs 824147 crore 20.00 percent y-o-y.

Canara Bank's Gross Advances grew by 20.00 percent in the September quarter to Rs 8,24,147 crore compared to Rs 6,86,813 crore in same quarter of last year.

RAM (Retail, Agriculture, and MSME) Credit, which constitutes 55 percent of Total Advances, grew by 16.40 percent.

Retail Credit grew by 12.52 percent with Housing loan at 17.01 percent.

 Gold Loan grew by 32.86 percent with Portfolio amount of Rs1,08,794 crore.

Gross Non-Performing Assets (GNPA) ratio reduced to 6.37 percent as at Sep 2022 down from 6.98 percent as at June 2022, 7.51 percent as at March 2022.

Net Non-Performing Assets (NNPA) ratio reduced to 2.19 percent as at Sep 2022 down from 2.48 percent as at June 2022, 2.65 percent as at March 2022.

Provision Coverage Ratio (PCR) stood at 85.36 percent as at Sep 2022 against 84.51percent as of June 2022.

Net NPA Ratio stood at 2.19 percent down by 102 bps.

Domestic Deposit of the Bank stood at Rs 1056519 crore as at September 2022 with growth of 7.77 percent  y-o-y.  

Retail lending Portfolio increased 12.52 percent  y-o-y to Rs 134051 crore as at Sep 2022

Housing Loan Portfolio increased 17.01 percent y.o.y to Rs 78852 crore

Advances to Agriculture grew by 21.62 percent  y-o-y to Rs 196576 crore as at Sep 2022.

Canara Bank’s Capital to risk Weighted ratio or CRAR stood at 16.51 percent as at Sep 2022 (14.91 percent as at June 2022). Out of which Tier-I is 13.40 percent.

(12.13 percent as at June 2022), Common Equity Tier 1 or CET1 is 11.14 percent (10.49 percent as at June 2022) and Tier-II is 3.11 percent (2.78 percent as at June 2022)

The bank raised capital during FY23 – Rs 4000 crore through AT-1 Bonds and Rs 2,00 crore via Tier II Bonds.

Its Capital Raising Plan for FY-23 is Rs 5500 crore via AT-1 Bonds and Rs 3500 crore through Tier II Bonds.

Canara Bank said it has shifted to the new tax regime. The reduction in Deferred Tax came up to Rs 2,451.60 crore.

The bank said the shift to new tax regime did not dent its profit as provision was made to that effect and implemented as per a well-planned strategy worked out for 1.5 years.

With respect to priority sector and financial inclusion, Canara Bank said it has achieved Targets in Priority Sector at 52.12 percent and Agricultural Credit at 23.35 percent of ANBC as of Sep 2022, as against the norm of 40 percent and 18 percent respectively.

Credit to small and marginal farmers stood at 16.96 percent of ANBC, against the norm of 9.50 percent.

Credit to Weaker Sections stood at 24.46 percent of ANBC, against the norm of 11.50 percent.

Credit to Micro Enterprises stood at 11.14 percent of ANBC, against the norm of 7.50 percent.

Credit to Non-Corporate Farmers stood at 18.66 percent of ANBC, against the norm of 13.78 percent.

As on September 30, Canara Bank said it has  9722 branches, out of which 3040 are Rural, 2748 Semi- Urban, 2002 Urban & 1932 Metro along with 10759 ATMs.

It is also having 3 overseas branches.