Canara Bank Q4 results: Net profit up 18% on retail growth, fall in provisions
MUMBAI Canara Bank, India’s fourth largest public sector bank by assets, reported an 18% increase in profit year on year led by growth in retail loans, other income and a sharp fall in provisions. Net profit increased to 3,757 crore in the quarter ended March, from 3,175 crore a year ago. Total advances increased 11% to 9.60 lakh crore, led by a 12% growth in retail loans and a 19% expansion in the financing of agricultural and allied activities.
CEO K Satyanarayana Raju said the bank expects to deliver 11-12% loan growth in the current fiscal year despite conscious efforts to shed low-yielding corporate loans.
A 9% growth in other income also contributed to the bank's profit. Other income increased to 5,218 crore from 4,775 crore a year ago.
A sharp 20% fall in provisions also aided the bank’s profit growth. Total provisions fell to 2,482 crore from 3,095 crore a year earlier reflecting the bank's improved asset quality. The gross non-performing assets (GNPA) ratio reduced to 4.23% in March 2024 from 5.35% a year ago. Net interest margin (NIM) improved to 3.05% from 2.95% a year ago mainly as the bank covered for the rise in cost of funds with higher lending rates.
