Canara Bank Q3 net rises 115.8% on steady growth in NII, dip in provisions

Canara Bank’s net profit rose by 115.8 per cent year on year at Rs 1,502 crore for the third quarter ended December 2021 (Q3FY22) on steady growth in Net Interest Income (NII) and dip in provisions.

The net profit was Rs 696 crore in Q3FY21 and Rs 1,333 crore in the second quarter ended September 2021 (Q2FY22).

Bengaluru-based lender's stock was trading 6 per cent higher at Rs 234.5 per share on BSE.

The bank's NII grew by 14.11 per cent to Rs 6,946 crore in Q3FY22 as against Rs 6,087 crore in Q3FY21. Sequentially, growth was 10.73 per cent with NII of Rs 6,273 crore in Q2FY22.

Public sector lender’s net interest margin were flat at 2.79 per cent in Q3FY22 from 2.8 per cent in Q3FY21. Sequentially, NIM improved from 2.71 per cent in Q2FY22, according to an investor presentation.

The non-interest income fell by 13.03 per cent on YoY basis to Rs 3,612 crore in Q3FY22 from Rs 4,153 crore in Q3FY21. Sequentially, it declined by 15.37 from Rs 4,268 crore in the quarter ended September 2021.

Its gross Advances grew by 9.28 per cent on YoY basis to Rs 7,29,506 crore in Q3FY22 as against Rs 6,67,561 crore in Q3FY21. Retail lending Portfolio increased 10.02 per cent YoY to Rs 1,23,098 crore as at December 31, 2021, bank said in a statement.

The total deposits rose by 7.23 per cent to Rs 10,43,350 crore in Q3FY22 from Rs 9,73,021 crore in Q3Fy21.

The provisions and contingencies fell sharply to Rs 2,244 crore in Q3FY22 from Rs 4,210 crore in Q3FY21 and also from Rs 3,360 crore in Q2FY22.

The lender's provisions for non-performing assets rose 1.81 per cent at Rs 2,705 crore in Q3FY22 from Rs 2,657 crore in Q3FY21. Provisions were also up from Rs 2,678 crore in Q2FY22.

The provision coverage ratio moderated to 83.26 per cent at end of December 2021 from 84.89 per cent a year ago. Sequentially, it rose from 82.44 per cent as of September 2021.

Its Gross NPAs inched up to 7.8 per cent in December 2021 from 7.46 per cent in the year ago period. Sequentially, they declined from 8.42 per cent in September 2021.

The Net NPAs rose to 2.86 per cent in December 2021 from 2.64 per cent a year ago. Sequentially, they declined from 3.21 per cent in September 2021.

The bank's capital adequacy ratio stood at 14.8 per cent in December 2021, up from 13.69 per cent in December 2020.