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Canara Bank’s net profit surges 75%
July 25, 2023
Canara Bank on July 24 reported a 74.8 percent year-on-year (YoY) rise in profit after tax at ₹3,534.84 crore in the first quarter of the current financial year, boosted by an increase in net interest income and improvement in interest margins and asset quality.
The state-owned lender reported a net profit of ₹2,022.03 crore in the year-ago period.
The Bengaluru-headquartered lender’s assets quality improved in the June quarter, with gross non-performing assets (NPAs) ratio at 5.15 percent against 5.35 percent in the previous quarter and 6.98 percent in the year-ago period.
The net NPA ratio stood at 1.57 percent, better than 1.73 percent in the previous quarter and 2.48 percent in the year-ago period.
The improvement in asset quality is beneficial to a bank as fewer risky assets tend to bring down the outstanding risk-weighted assets, saving capital for the lender.
In absolute terms, the bank’s gross NPA stood at ₹45,727 crore as on June 30, against ₹54,734 crore in the year-ago period. The net NPA too was down at ₹13,461 crore from ₹18,505 crore.
In the reporting quarter, the net interest income, the difference between the interest earned on loans and paid to depositors, rose 27.72 percent on-year to ₹8,666 crore.
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