Canara Bank Q1 earnings: The bank’s asset quality improved, with the gross non-performing assets (NPAs) ratio falling from 6.98% a year ago to 5.15% this quarter, compared to 5.35% in the preceding quarter.
In the first quarter of the current fiscal year, Canara Bank’s profit after tax increased by 74.8 percent year over year (YoY) to Rs 3,534.84 crore, helped by an increase in net interest revenue as well as betterment in interest margins and asset quality.
In the same period last year, the state-owned institution earned a net profit of Rs 2,022.03 crore.
With a gross non-performing assets (NPAs) ratio of 5.15 percent in the June quarter compared to 5.35 percent in the previous quarter and 6.98 percent in the same time last year, the lender with its headquarters in Bengaluru saw an improvement in the quality of its assets.
The net NPA ratio was 1.57 percent, which was lower than the 2.48 percent quarterly average and the 1.73 percent quarter-to-quarter average.
A bank benefits from an improvement in asset quality since less risky assets tend to lower the outstanding risk-weighted assets, saving the lender capital.
As of June 30, the bank’s gross non-performing assets (NPA) were at Rs 45,727 crore, compared to Rs 54,734 crore during the same time last year. Additionally, the net NPA decreased to Rs 13,461 billion from Rs 18,505 billion.
Net interest income, or the difference between interest received on loans and interest paid to depositors, increased by 27.72 percent year over year to Rs 8,666 crore in the reporting quarter.
