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Canara Bank has
reported 18% growth in net profit at Rs 3757.23 crore for the quarter ended
March 2024 (Q4FY2024). The bank has posted healthy 11% growth in net interest
income (NII), while the core fee income of the bank rose 2% in Q4FY2024. The
Net Interest Margin (NIM) of the bank improved on sequential basis to 3.07% in
Q4FY2024, while it was steady from 3.07% in the corresponding quarter of
previous year.
On business front, the bank
as has posted 11% growth in business with 11% increase in loan book. The asset
quality of the bank was stable in Q4FY2024. Bank has maintained steady credit
to deposit ratio at 73.2% at end March 2024 from 73.2% at end March 2023. The
CASA ratio of the bank has declined to 29.9% at end March 2024 from 31.1% at
end March 2023.
Asset quality improves: The bank has maintained
stable asset quality in Q4FY2024.
The fresh slippages of
loans stood at Rs 3400 crore in Q4FY2024 compared with 3176 crore in previous
quarter and Rs 2973 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 929 crore, upgradations at Rs 520 crore and the write-off of loans
was at Rs 3068 crore in Q4FY2024.
Provision coverage ratio
was steady at 89.10% at end March 2024 compared to 89.01% a quarter ago and 87.31%
a year ago.
The capital adequacy
ratio of the bank stood at 16.3% with Tier I ratio at 14.0% at end March 2024.
The risk weighted assets
of the bank has increased 18% YoY to Rs 669257 crore end March 2024,
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Asset Quality
Indicators: Canara Bank
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Mar-24
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Dec-23
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Sep-23
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Jun-23
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Mar-23
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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40604.57
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41721.90
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43955.59
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45727.37
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46159.51
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-3
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-12
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Net NPA (Rs Crore)
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11822.83
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12175.90
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12554.00
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13461.43
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14349.33
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-3
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-18
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% Gross NPA
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4.23
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4.39
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4.76
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5.15
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5.35
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-16
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-112
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% Net NPA
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1.27
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1.32
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1.41
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1.57
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1.73
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-5
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-46
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% PCR
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89.10
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89.01
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88.73
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88.04
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87.31
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9
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179
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% CRAR - Basel III
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16.28
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15.78
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16.20
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16.24
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16.68
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50
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-40
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% CRAR - Tier I -
Basel III
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13.95
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13.38
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13.60
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13.58
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13.78
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57
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17
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business Highlights:
Healthy business growth:
The business of the bank
has increased 11% YoY to Rs 2272969 crore end March 2024, driven by 11% growth in
advances to Rs 960602 crore. Deposits rose 11% to Rs 1312367 crore at end March
2024.
CASA deposits ratio rise
sequentially: The CASA deposits of the bank increased 7% YoY to Rs 392327 crore
at end March 2024. The current account deposits surged 34% to Rs 63949 crore,
while saving account deposits rose 3% to Rs 328378 crore end March 2024. The
CASA ratio declined to 29.9% at end March 2024 compared to 31.1% at end March
2023, while improved from 29.2% a quarter ago. The term deposits have increased
13% to Rs 920040 crore end March 2024. Overseas deposits have moved up 15% to
Rs 97415 crore end March 2024.
Strong loan growth: Advances growth was
driven by retail loans rising 12% YoY to Rs 156414 crore at end March 2024, while
credit to agriculture increased 19% to Rs 253206 crore and MSME 7% to Rs 131869
crore at end March 2024. The corporate credit has increased 9% to Rs 419113 crore
end March 2024. The overseas credit has jumped 16% to Rs 52420 crore end March
2024.
Investment book of the bank increased 10% YoY to Rs 363551 crore at end March
2024. The SLR book moved up 12% to Rs 324154 crore, while non SLR book rose 7% to
Rs 36682 crore at end March 2024. The AFS book surged 33% to Rs 69748 crore, while
HTM book rose 8% to Rs 290652 crore at end March 2024.
Margins improve: The bank has showed 97 bps
YoY jump in cost of deposits to 5.00%, while yield on advances increased 101 bps
YoY to 8.71% in Q4FY2024. Thus, the NIM has eased 3 bps YoY, while rose 5 bps
qoq to 3.07% in Q4FY2024.
Branch expansion: The bank has added 20 branches
and reduced 254 ATMs in Q4FY2024, taking overall tally to 9608 branches and 10209
ATM`s end March 2024.
Book value of the bank stood at Rs 429.1
per share at end March 2024, while the adjusted book value (net of NNPA and 25%
of restructured advances) was Rs 352.0 per share at end March 2024.
Quarterly Performance
NII rises as NIM
improves: Bank
has recorded 20% increase in the interest earned at Rs 28807.35 crore, while
interest expenses increased 26% to Rs 19227.15 crore in Q4FY2024. NII improved 11%
to Rs 9580.20 crore in the quarter ended March 2024.
Moderate growth in the
core fee income: Bank has posted 2% growth in core fee income to Rs 1941 crore, while
the treasury income zoomed 339% to Rs 663 crore and other income jumped 63% to
Rs 511 crore, supporting 9% rise in the overall non-interest income to Rs 5217.83
crore in the quarter ended March 2024. However, the recoveries income declined 12%
to Rs 1900 crore and forex income dipped 22% to Rs 177 crore
Stable expenses ratio: The operating expenses
of the bank increased 21% to Rs 7410.57 crore, as other expenses moved up 22% to
Rs 2952.16 crore, while employee expenses increased 20% to Rs 4458.41 crore in
Q4FY2024. Cost to income ratio increased to 50.1% in Q4FY2024 compared with 45.8%
in Q4FY2023, allowing the Operating Profit to rise 2% to Rs 7387.46 crore.
Provisions and
contingencies decline: The bank has showed 20% decline in provisions to Rs 2481.82 crore.
The loan loss provisions declined 5% to Rs 2280 crore, while the bank has
written back other provisions of Rs 138 crore. However, the investment
provisions surged 528% to Rs 295 crore and standard asset provisions rebounded
to Rs 44 crore.
Effective tax rate declined to 23.4% in Q4FY2024 from 23.6% in Q4FY2023. Net Profit rose by 18% YoY
to Rs 3757.23 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 37% increase
in net profit to Rs 14554.33 crore in the year ended March 2024 (FY2024). The
net interest income increased 16% to Rs 36565.94 crore, while non-interest
income moved up 1% to Rs 18966.44 crore, pushing up net total income by 11% to
Rs 55532.38 crore in FY2024. The operating expenses increased 16% to Rs 26119.79
crore, while provision and contingencies dipped 28% to Rs 9707.61 crore. Profit
before tax increased 39% to Rs 19704.98 crore in FY2024. The cost-to-income
ratio jumped to 47.0% in FY2024 compared to 44.8% in FY2023. An effective tax
rate rose to 26.1% in FY2024 compared to 25.2% in FY2023. The net profit has
increased 37% to Rs 14554.33 crore in FY2024.
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Canara Bank: Results
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Particulars
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Interest Earned
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28807.35
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23909.80
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20
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108687.93
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84424.78
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29
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Interest Expended
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19227.15
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15293.01
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26
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72121.99
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52989.49
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36
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Net Interest Income
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9580.20
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8616.79
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11
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36565.94
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31435.29
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16
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Other Income
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5217.83
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4775.17
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9
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18966.44
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18762.20
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1
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Net Total Income
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14798.03
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13391.96
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10
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55532.38
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50197.49
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11
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Operating Expenses
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7410.57
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6139.72
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21
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26119.79
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22481.48
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16
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Operating Profits
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7387.46
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7252.24
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2
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29412.59
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27716.01
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6
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Provisions &
Contingencies
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2481.82
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3094.95
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-20
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9707.61
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13543.01
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-28
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Profit Before Tax
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4905.64
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4157.29
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18
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19704.98
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14173.00
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39
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EO
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0.00
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0.00
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-
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0.00
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0.00
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-
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PBT after EO
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4905.64
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4157.29
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18
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19704.98
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14173.00
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39
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Provision for tax
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1148.41
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982.55
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17
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5150.65
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3569.24
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44
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PAT
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3757.23
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3174.74
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18
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14554.33
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10603.76
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37
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EPS*(Rs)
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82.84
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70.00
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80.23
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58.45
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Adj BV (Rs)
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352.05
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268.80
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352.05
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268.80
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* Annualized on current equity of
Rs 1814.13 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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