 "Canara Bank Q4 profit up 90.6% at Rs 3,175 cr, robust NII boosts growth")
Canara Bank’s net profit rose 90.6 per cent year-on-year (YoY) at Rs 3,175 crore for the quarter ended March 2023 (Q4 FY23) on healthy growth in net interest income (NII) and non-interest income.
Sequentially, the public sector lender’s profit rose from Rs 2,882 crore in Q3FY23.
For FY23, the bank's net profit grew 86.76 per cent to Rs 10,604 crore compared to Rs 5,678 crore in FY22.
The board of directors has recommended a dividend of Rs 12 per share (Rs 10 each) for FY23, subject to shareholders' approval, the Bengaluru-based lender told BSE. Its share was trading 1.41 per cent to Rs 314.05 per share.
Capital adequacy ratio stood at 16.68 per cent with Common Equity Tier of 11.59 per cent at the end of March.
Canara Bank’s NII, interest revenues minus interest expenses, grew 23.01 per cent YoY to Rs 8, 617 crore in Q4 FY23 as against Rs 7,005 crore for Q4 FY22. The net interest margin improved to 3.07 per cent in Q4 FY23 from 2.93 per cent in Q4FY22. It has guided for NIM of 3.05 per cent for Fy24, according to the Analyst presentation.
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Non-interest income rose by 7.04 per cent YoY to Rs 4,776 crore in Q4 FY23, the bank said in a statement.
Its advances grew by 16.41 per cent YoY basis to Rs 8.62 trillion in FY23. Out of it, RAM advances – Retail, Agriculture and MSME (RAM)- increased by 13.23 per cent to Rs 4.77 trillion at the end of March 2023.
Canara Bank has guided for moderate credit growth of 10.5 per cent in Fy24.
Total deposits increased by 8.54 per cent YoY to Rs 11.79 trillion. The share of low-cost money—current account and saving accounts (CASA)—in domestic deposits stood at 33.48 per cent at the end of March 2023, down marginally from 35.88 per cent a year ago. It has guided for improvement in CASA ratio to 35 per cent by the end of March 2024.
It expects to grow deposits by 8.5 per cent in FY24.
Asset quality profile improved with gross non-performing assets (NPA) declining to 5.35 per cent in March from 7.51 per cent in the same month in 2022. The net NPAs also declined 1.73 per cent in March 2023 from 2.65 per cent a year ago.
For FY24, it wants to bring down GNPAs to 4.5 per cent and net NPA to 1.2 per cent level.
The provision coverage ratio improved to 87.31 per cent in March 2023 from 84.17 per cent a year ago. It would like to improve PCR to 90 per cent by the end of March 2024.