Canara Bank shares soar 8% to 52-week high on impressive Q2 numbers
Canara Bank shares exhibited an upward trend for the second straight day, surging by almost 8% to record a new 52-week high of ₹387.80 apiece. At 1:30 PM, the stock was trading with a gain of 6.52% at ₹382.75. This strong uptick in the shares was in response to the bank's impressive September quarter numbers, which were released on Thursday after market hours.
The state-owned bank reported its highest-ever quarterly net profit of ₹3,606 crore in Q2 FY24, a jump of 42.81% compared to the net profit of ₹2,525 crore reported in the same period last year. In the preceding June quarter, the bank had reported a net profit of ₹3,535 crore. The strong rise in the net profit during the quarter was attributed to a healthy growth in the net interest income and a drop in provisions.
The net interest income of the bank grew by 19.76% YoY to ₹8,903 crore in the September quarter, while the net interest margin of the bank came in at 3.02% in Q2, an improvement of 19 basis points YoY. The pre-provision operating profit (PPOP) of the bank reached ₹7,616 crore for the September 2023 quarter, showing a growth of 10.30% YoY. The bank's provisions came down to ₹4,010 crore from ₹4,380 crore in Q2FY23.
Zomato vs Paytm: Which internet stock should you pick for long term? On the asset quality front, the bank's gross non-performing assets (GNPA) ratio stood at 4.76% in Q2 FY24 as against 6.37% in Q2 FY23. The net non-performing assets (NNPA) ratio improved to 1.41% in Q2 FY24 from 2.19% in Q2 FY23. The provision coverage ratio (PCR) improved to 88.73% in Q2FY24 from 85.36% in Q2FY23.
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