Canara Bank Q2 Results: Net Profit Rises 11% to ₹4,015 Crore

On October 29, Canara Bank announced its Q2 results for FY25, reporting an 11.32% year-on-year increase in standalone net profit, reaching ₹4,014.53 crore, compared to ₹3,606.14 crore in the same quarter last year.

The bank’s total income for the quarter rose by 10.32% to ₹34,721.07 crore, up from ₹31,472.18 crore a year earlier. Interest income also saw an increase of nearly 11%, reaching ₹29,740.07 crore, compared to ₹26,837.68 crore in Q2 of the previous financial year.

Significantly, the bank improved its asset quality, with the gross non-performing asset (GNPA) ratio declining by 103 basis points to 3.73%. The net NPA ratio also improved, falling to 0.99%, down 42 basis points from 1.41% in September 2023.

According to the bank’s exchange filing, the provision coverage ratio (PCR) rose by 216 basis points to 90.89%, while the slippage ratio improved by 32 basis points to 1%.

Canara Bank’s global business increased by 9.42% year-on-year, totaling ₹23,59,344 crore by the end of September 2024. Domestic deposits grew by 8.34% to ₹12,38,713 crore, while gross domestic advances rose by 8.64% to ₹9,54,149 crore.

Retail, agriculture, and MSME (RAM) credit saw an 11.54% increase, amounting to ₹5,76,589 crore, with the retail lending portfolio growing significantly by 31.27% to ₹1,94,556 crore. The housing loan segment also increased by 12.29% to ₹99,452 crore.

As of September 30, 2024, Canara Bank operated 9,658 branches (3,115 rural, 2,778 semi-urban, 1,918 urban, and 1,847 metro) along with 9,881 ATMs and four overseas branches located in London, New York, Dubai, and IBU Gift City.

Following the announcement of these results, Canara Bank’s share price rose by 2.48% to ₹103.15 around 1:30 PM.