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Canara Bank has
reported 12% growth in net profit at Rs 4104.20 crore for the quarter ended
December 2024 (Q3FY2025). The bank has posted 3% decline in net interest income
(NII), while the core fee income of the bank improved 23% in Q3FY2025. The Net
Interest Margin (NIM) of the bank dipped to 2.71% in Q3FY2025 compared to 3.02%
in the corresponding quarter of previous year.
On business front, the
bank as has posted 9% growth in business with 10% increase in loan book. The
asset quality of the bank was stable in Q3FY2025. Bank has raised the credit to
deposit ratio to 76.7% at end December 2024 from 75.3% at end December 2023.
However, the CASA ratio of the bank has declined to 27.5% at end December 2024
from 29.2% at end December 2023.
Asset quality improves: The bank has improved
asset quality in Q3FY2025.
The fresh slippages of
loans stood at Rs 2464 crore in Q3FY2025 compared with 2345 crore in previous
quarter and Rs 3176 crore in the corresponding quarter last year.
The recoveries of NPAs
stood at Rs 780 crore, upgradations at Rs 460 crore and the write-off of loans was
at Rs 3896 crore in Q3FY2025.
Provision coverage ratio
improved to 91.26% at end December 2024 compared to 90.89% a quarter ago and
89.01% a year ago.
The capital adequacy
ratio of the bank stood at 16.4% with Tier I ratio at 14.6% at end December 2024.
The risk weighted assets
of the bank has increased 11% YoY to Rs 728892 crore end December 2024,
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Asset Quality
Indicators: Canara Bank
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Dec-24
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Sep-24
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Jun-24
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Mar-24
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Dec-23
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Variation
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QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
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35060.64
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37733.30
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40356.38
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40604.57
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41721.90
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-7
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-14
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-16
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Net NPA (Rs Crore)
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9081.10
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9777.44
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11701.77
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11822.83
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12175.90
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-7
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-23
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-25
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% Gross NPA
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3.34
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3.73
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4.14
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4.23
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4.39
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-39
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-89
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-105
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% Net NPA
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0.89
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0.99
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1.24
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1.27
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1.32
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-10
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-38
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-43
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% PCR
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91.26
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90.89
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89.22
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89.10
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89.01
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37
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216
|
225
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% CRAR - Basel III
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16.44
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16.57
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16.38
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16.28
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15.78
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-13
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16
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66
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% CRAR - Tier I -
Basel III
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14.55
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14.64
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14.37
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13.95
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13.38
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-9
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60
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117
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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:
Moderate business
growth: The
business of the bank has increased 9% YoY to Rs 2419171 crore end December
2024, driven by 10% rise in advances to Rs 1049706 crore. Deposits rose 8% to
Rs 1369465 crore at end December 2024.
CASA deposits ratio
declines: The
CASA deposits of the bank increased 2% YoY to Rs 377207 crore at end December
2024. The current account deposits increased 5% to Rs 47527 crore, while saving
account deposits rose 2% to Rs 329680 crore end December 2024. The CASA ratio
declined to 27.5% at end December 2024 compared to 29.2% at end December 2023,
while declined from 28.7% a quarter ago. The term deposits have increased 11%
to Rs 992258 crore end December 2024. Overseas deposits have increased 17% to
Rs 112039 crore end December 2024.
Double digit loan
growth: Advances
growth was driven by retail loans rising 35% YoY to Rs 208116 crore at end
December 2024, while credit to agriculture increased 1% to Rs 243787 crore and
MSME 7% to Rs 143886 crore at end December 2024. The corporate credit has moved
up 8% to Rs 453917 crore end December 2024. The overseas credit has jumped 27%
to Rs 62115 crore end December 2024.
Investment book of the bank increased 8% YoY to Rs 385173 crore at end December
2024. The SLR book moved up 5% to Rs 333068 crore, while non SLR book jumped 36%
to Rs 49986 crore at end December 2024. The AFS book dipped 11% to Rs 52920
crore, while HTM book rose 7% to Rs 305208 crore at end December 2024.
Margins dip: The bank has showed 35
bps YoY jump in cost of deposits to 5.28%, while yield on advances increased 19
bps YoY to 8.79% in Q3FY2025. Thus, the NIM has declined 16 bps YoY and 15 bps
qoq to 2.71% in Q3FY2025.
Branch expansion: The bank has added 158
branches and cut 165 ATMs in Q3FY2025, taking overall tally to 9820 branches
and 12026 ATM`s end December 2024.
Book value of the bank stood at Rs
98.2 per share at end December 2024, while the adjusted book value (net of NNPA
and 25% of restructured advances) was Rs 86.4 per share at end December 2024.
Quarterly Performance
NII declines as NIM dips:
Bank has recorded 8%
increase in the interest earned at Rs 30311.61 crore, while interest expenses
increased 14% to Rs 21163.04 crore in Q3FY2025. NII declined 3% to Rs 9148.57
crore in the quarter ended December 2024.
Healthy growth in the
core fee income: Bank has posted strong 23% growth in core fee income to Rs 2185
crore, while the recoveries income jumped 21% to Rs 2008 crore and forex income
46% to Rs 228 crore. Further, the treasury income zoomed 205% to Rs 945 crore
and other income rose 3% to Rs 383 crore, leading to 35% surge in the overall
non-interest income to Rs 5802.16 crore in the quarter ended December 2024.
Expenses ratio improves:
The operating expenses
of the bank increased 3% to Rs 7114.11 crore, as other expenses moved up 11% to
Rs 2633.59 crore, while employee expenses declined 1% to Rs 4480.52 crore in
Q3FY2025. Cost to income ratio improved to 47.6% in Q3FY2025 compared with
50.4% in Q3FY2024, helping the Operating Profit to increase 15% to Rs 7836.62
crore.
Provisions and
contingencies rise: The bank has showed 26% increase in provisions to Rs 2398.25
crore. The loan loss provisions declined 6% to Rs 1982 crore, while the bank
has written back other provisions of Rs 149 crore. However, the investment
provisions surged 143% to Rs 440 crore and standard asset provisions galloped 22%
to Rs 126 crore in Q3FY2025.
Effective tax rate declined to 24.5% in
Q3FY2025 from 25.5% in Q3FY2024. Net Profit rose by 12% YoY to Rs 4104.20 crore
during quarter ended December 2024.
Financial Performance
9MFY2025:
Bank has posted 11%
increase in net profit to Rs 12024.01 crore in the nine months ended December
2024 (9MFY2025). The net interest income increased 2% to Rs 27630.04 crore,
while non-interest income moved up 17% to Rs 16102.04 crore, pushing up net
total income by 7% to Rs 43732.08 crore in 9MFY2025. The operating expenses
increased 10% to Rs 20625.49 crore, while provision and contingencies fell 4%
to Rs 6931.88 crore, allowing profit before tax to increase 9% to Rs 16174.71
crore in 9MFY2025. The cost-to-income ratio increased to 47.2% in 9MFY2025
compared to 45.9% in 9MFY2024. An effective tax rate declined to 25.7% in
9MFY2025 compared to 27.0% in 9MFY2024. The net profit has increased 11% to Rs
12024.01 crore in 9MFY2025.
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Canara Bank: Results
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Particulars
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2412 (3)
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2312 (3)
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Var %
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2412 (9)
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2312 (9)
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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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30311.61
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28038.83
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8
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88753.03
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79880.58
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11
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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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21163.04
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18621.73
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14
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61122.99
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52894.84
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16
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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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9148.57
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9417.10
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-3
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27630.04
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26985.74
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2
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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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5802.16
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4295.10
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35
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16102.04
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13748.61
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17
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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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14950.73
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13712.20
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9
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43732.08
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40734.35
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7
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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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7114.11
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6906.67
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3
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20625.49
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18709.22
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10
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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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7836.62
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6805.53
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15
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23106.59
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22025.13
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5
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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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2398.25
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1898.91
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26
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6931.88
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7225.79
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-4
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9707.61
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13543.01
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-28
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PBT
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5438.37
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4906.62
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11
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16174.71
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14799.34
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9
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19704.98
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14173
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39
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Provision for tax
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1334.17
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1250.50
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7
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4150.70
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4002.24
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4
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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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4104.20
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3656.12
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12
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12024.01
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10797.10
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11
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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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18.1
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16.1
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17.7
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15.9
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16.0
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11.7
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Adj BV (Rs)
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86.4
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68.7
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86.4
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68.7
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70.4
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53.8
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* Annualized on current equity of
Rs 1814.13 crore. Face Value: Rs 2, Figures in Rs crore
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Source: Capitaline Corporate
Database
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