Canara Bank Reports 10% Profit Increase, Stronger Asset Quality in Q1 FY24

Canara Bank, a state-owned bank based in Bengaluru, reported a 10% increase in net profit to Rs 3,905 crore for the first quarter ending on June 30. This rise was attributed to a reduction in bad loans. The bank had achieved a net profit of Rs 3,535 crore in the same period last year.

Canara Bank’s total income for the quarter increased to Rs 34,020 crore, up from Rs 29,823 crore a year ago, as stated in a regulatory filing. Interest income also grew to Rs 28,701 crore from Rs 25,004 crore in the corresponding quarter of the previous year.

In terms of asset quality, the bank’s Gross Non-Performing Assets (NPAs) decreased to 4.14% of gross advances as of June 30, 2024, down from 5.15% in the first quarter of the previous fiscal year.

Net NPAs also decreased to 1.24% of the advances, from 1.57% a year ago. Consequently, the provision for bad loans decreased to Rs 2,171 crore from Rs 2,418 crore in the same quarter of the previous year.

Additionally, the Capital Adequacy Ratio (CRAR) marginally increased to 16.28% compared to 16.24% on June 30, 2023.