24-Jan-2024
2 mins read
India’s public sector lender, Canara Bank, released the October to December 2023 quarterly earnings on Wednesday, January 24, 2024. It reported a Net profit of Rs 3,656 crore, registering a growth of 26.87% from Rs 2,881.5 crore compared to the same period last year.
Market Reaction After Q3 Earnings
On Wednesday, the share price of Canara Bank opened the session at Rs 458.80, nearly flat as compared to the previous session. The Q3 earnings were released due to the live market hours, so prices are adjusted according to investors’ reactions. The stock price closes at Rs 454.30 with an intraday decline of -0.35%.
NII and Net Interest Margin Update
In the December Quarter, the Bank’s Net Interest Income increased by 9.5% to Rs 9,417 from Rs 8,600 annually. The Net Interest Margin was improved by nine basis points to 3.02%.
Asset Quality on Improving Path
Furthermore, during the December 2023 quarter, the Asset quality of Canara Bank improved. The bank’s gross NPA fell by 5.1% and stands at Rs 41,722 crore from Rs 43,955.6 crore on a quarter-on-quarter basis. The Net NPA declined 3% to Rs 12,176 crore from Rs 12 554 crore on a QoQ basis.
The Gross NPA ratio decreased to 4.39% from 4.76% in the September quarter. Meanwhile, the Net NPA ratio declined to 1.32% from a 1.41% QoQ basis.
The Domestic Deposit of the Bank stood at Rs 11,66,848 crore in December 2023, with a growth of 8.07% YoY. Meanwhile, the domestic advances rose by 12.26% YoY to Rs 9,01 465 crore.
The bank provisions in Q3 dropped to Rs 1,899 crore from Rs 2,609 crore in September. The PCR improved to 89.01% (Dec 2023) from 86.32% (Dec 2022).
Global Business Update
Canara Bank said its Global business increased by 9.87% YoY to Rs 22,13,360 crore. The Global deposit stood at Rs 12,62,930 crore, and Global Advances (gross) stood at Rs 9,50,430 crore.