Canara Bank announced on Wednesday that its fourth quarter net profit increased 18.33% year over year to ₹3,757 crore due to improved interest income and a decrease in provisions. Net profit increased 37.25% to ₹14,554 crore for the entire fiscal FY24 from ₹ 10,604 crore the previous year.
MD & CEO K. Satyanarayana Raju stated that despite fierce competition to increase deposits, the interest margins improved. The capital adequacy ratio (CAR) of the bank was 11.58% for common equity Tier-1 and 16.28% for CAR.
In Q4 of FY24, net interest income (NII) increased by 11.18% to ₹9,580 crore from ₹8,617 crore during the same period the previous year. In contrast to the 120% dividend it handed out the previous year, the board recommended a 161% dividend for FY24.
The bank’s gross non-performing asset (NPA) ratio decreased to 4.23 percent in the reporting quarter from 4.39 percent in the previous quarter and 5.35 percent in the previous year.
As of March 31, the net non-performing assets (NPA) ratio was 1.27 percent, down from 1.32 percent a quarter earlier and 1.73 percent a year earlier. According to the bank’s investor presentation, net NPA decreased 46 basis points on a year during the January-March quarter, while gross NPA fell 112 basis points on a year. However, the bank’s fresh slippages jumped to Rs 3,082 crore in the reporting quarter compared to Rs 2,857 crore in the same period last year.
As of March 31, 2024, the provision coverage ratio (PCR) was 89.10 percent, up from 89.01 percent in the previous quarter and 87.31 percent in the previous year. The bank’s SMA 2 loans of Rs 5 crore and above decreased to Rs 3,897 as of March 31 from Rs 4,516 crore during the same period last quarter. But every year, it increased dramatically. According to an investor presentation, the bank’s outstanding SMA 2 loans were valued at Rs 1,880 crore a year ago.
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