Highlights:

The bank has posted 9.3% growth in the global business to Rs 24.19 lakh crore end December 2024, driven by a 10.45% surge in global advances to Rs 10.50 lakh crore and global deposits rising 8.44% yoy to Rs 13.69 lakh crore.

The retail, agriculture and MSME (RAM) loan book of the bank increased 12.32% with retail loan growth at 35.46%. The loan growth is healthy for home loans at 12% and vehicle loans at 17%. The corporate credit saw an increase of 8% end December 2024.

The operating profit of the bank has increased 15.15% yoy to Rs 7837 crore in Q3FY2025. The net profit has improved 12.2% to Rs 4104 crore. The bank has posted strong 23% growth in the core fee income to Rs 2185 crore.

On asset quality front, the bank has exhibited a healthy 105 bps yoy reduction in GNPA ratio to 3.34%, while the NNPA ratio has declined to all time low of 0.89% end December 2024.

The provision coverage ratio (PCR) has touched a historic high of 91.26%, rising 225 bps on a yoy basis.

The bank has also exhibited an improvement in credit cost to 0.89% in Q3FY25, down 8 bps yoy.

The slippage ratio has improved below 1% market by 28 bps yoy to 0.96% in Q3FY2025.

The bank has witnessed a slight decline in the CASA deposit ratio to 30%.

The bank has opened 180 new branches in 9MFY25 and it aims to add 250 branches in FY2025 in addition to 211 branches added in FY25.

The bank expects to maintain double-digit loan growth.

The bank aims to continue steady growth in Net Interest Income (NII) on a sequential basis.

On the liabilities side, the focus remains on boosting retail term deposits and CASA deposits.

The bank has maintained the business growth guidance of 10%.

The bank has an excess of 8% of SLR, which has been used to raise Rs 40000-45000 crore of funds at the RBI window.

The bank expects slippages of loans to reduce below Rs 2400 crore and recoveries should be more than Rs 3000 crore in Q4FY2025. The bank is also expecting Rs 2000 crore of recoveries from technically written off pools.

On transfer of NPAs to NARCL, the bank is expecting Rs 500-600 crore from two accounts in Q4FY2024.

As per the bank, the LCR guidelines from the RBI, effective 1 April may have an impact of 12-13 bps on LCR.

The bank is focused on monetizing its stakes in Canara Robeco Mutual Fund and Canara HSBC Insurance Company, with their IPOs expected next financial year.

The bank has exposure of Rs 6500 crore to renewable energy projects and total sanctions stands at Rs 15000 crore.