Canara Bank Q1 results: Net profit increment 10.5% to ₹3,905 crore; NII increased by 6%

Canara Bank Q1 results: The lender’s standalone net profit rose 10.5 percent year-on-year (YoY) to ₹3,905 crore in the quarter ended June 2024 (Q1FY25), in line with analysts’ expectations. This compares with a net profit of ₹3,535 crore in the same period last year. Additionally, net interest income (NII) grew 6 percent year-on-year to ₹9,166 crore in the quarter under review from ₹8,666 crore in the previous year.
However, the bank saw a decline in its net interest margin, falling to 2.9 percent in the June 2024 quarter from 3.05 percent in both the same period last year and the previous March quarter.
Canara Bank’s asset quality increased in the June quarter. Gross NPAs declined to 4.14 percent in the first quarter from 5.15 percent in the same quarter last year and 4.23 percent in the March 2024 quarter. Net NPA also declined to 1.24 percent during the period under review, which was 1.27 percent in March and 1.57 percent a year ago.
Moreover, the lender’s operating profit before provisions and contingencies remained largely unchanged at ₹7,616 crore for the June quarter, slightly higher than ₹7,606 crore in the same period last year. Meanwhile, provisions for the quarter declined 16 percent year-on-year to ₹2,282 crore, with provisions for non-performing assets (NPAs) falling 10 percent year-on-year.
Non-interest income for the first quarter also rose 10 percent year-on-year to ₹5,319 crore, compared to ₹4,819 crore in the corresponding quarter last year.