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Canara Bank gains after Q2 PAT climbs 89% YoY to Rs 2,525 cr

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Capital Market
Last Updated : Oct 20 2022 | 1:16 PM IST

Canara Bank rose 1.18% to Rs 252.90 after the PSU bank's standalone net profit surged 89.51% to Rs 2,525.47 crore on 16.88% rise in total income to Rs 24,932.19 crore in Q2 FY23 over Q2 FY22.

The bank's operating profit before provisions and contingencies jumped 23.23% to Rs 6,905.48 crore in Q2 FY23 from Rs 5,603.64crore recorded in Q2 FY22.

The bank's net interest income grew 18.51% year on year to Rs 7,434 crore in Q2 FY23. Meanwhile, the non-interest income rose 13.05% year on year in Q2 FY23.

Total provisions and contingencies increased by 8.23% to Rs 3,636.81 crore in Q2 FY23 from Rs 3,360.23 crore recorded in the same period last year. Provision Coverage Ratio (PCR) improved to 85.36% as of 30 September 2022 from 84.51% posted on 30 June 2022 and 82.44% reported 30 September 2021.

On the asset quality front, the bank's gross non-performing assets (NPAs) stood at Rs 52,485.14 crore as on 30 September 2022 as against Rs 54,733.88 crore as on 30 June 2022 and Rs 57,853.09 crore as on 30 September 2021.

The ratio of gross NPAs reduced to 6.37% as on 30 September 2022 as against 6.98% as on 30 June 2022, 8.42% as on 30 September 2021.

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The ratio of net NPA ratio reduced to 2.19% as on 30 September 2022 as compared with 2.48% as on 30 June 2022, 3.21% as on 30 September 2021.

Meanwhile, the bank's slippage ratio was 0.35% as of 30 September 2022 from 0.36% as on 30 June 2022 and 0.1.04% as on 30 September 2021.

Domestic deposit of the bank stood at Rs 10,56,519 crore as at 30 September 2022 with growth of 7.77% YoY. CASA deposits rose 7.47% year on year (YoY) to Rs 359,460 crore as of 30 September 2022.

Domestic advances (gross) of the bank stood at Rs 780,049 crore as at 30 September 2022 grew by 17.66% YoY. The PSU bank's retail lending portfolio increased 12.52% YoY to Rs 134,051 crore as at 30 September 2022 while housing loan portfolio increased 17.01% YoY to Rs 78,852 crore.

The bank's CRAR stood at 16.51% as at 30 September 2022. Out of which tier-I is 13.40%, CET1 is 11.14% and tier-II is 3.11%. Return on Equity stood at 18.86% improved by 664 bps in Q2 FY23.

Global business increased by 13.89% YoY to Rs 1958111 crore as at 30 September 2022 with global deposits at Rs 1133964 crore 9.82% YoY and global advance (gross) at Rs 824147 crore 20% YoY.

The bank has achieved targets in priority sector at 52.12% and agricultural credit at 23.35% of adjusted net bank credit (ANBC) as at 30 September 2022, as against the norm of 40% and 18% respectively. Credit to small and marginal farmers stood at 16.96% of ANBC, against the norm of 9.50%. Credit to Weaker Sections stood at 24.46% of ANBC, against the norm of 11.50%. Credit to Micro Enterprises stood at 11.14% of ANBC, against the norm of 7.50%. Credit to Non Corporate Farmers stood at 18.66% of ANBC, against the norm of 13.78%.

As on 30 September 2022, the bank has 9,722 number of branches, out of which 3,040 are rural, 2,748 semiurban, 2,002 urban & 1,932 metro along with 10,759 ATMs. The bank is also having 3 overseas branches in London, Dubai and New York.

Canara Bank is a public sector bank. As of 30 September 2022, the Government of India held 62.93% in the bank.

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First Published: Oct 20 2022 | 12:53 PM IST

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