Canara Bank reported 92% YoY net profit jump in December Quarter 2022. The PSU bank’s net profit came in at Rs 2,882 crore in Q3FY23 compared to Rs 1502 crore, in the same period a year ago. Robust net interest income (NII), lower provisions and controlled expenditure supported Canara Bank’s strong profitability in Q3FY23. Provisions for non-performing assets at Rs 1,920 crore fell 29% YoY in December Quarter 2022. Net interest margin stood at 3.05% in December Quarter 2022 compared to 2.83%, corresponding quarter previous year.
Canara Bank’s stock price is up 20% over the past three months. Strong stock price run up is supported by improving asset quality and controlled provisions. Gross non-performing assets (GNPA) ratio stood at 5.89% in Q3FY23 improving 191 basis points (bps) YoY. GNPA ratio improved 48 bps QoQ.
Net non-performing assets (Net NPA) ratio came in at 1.96%, improving 90 bps YoY and 23 bps sequentially in Q3FY23. Canara Bank’s GNPA ratio is the best in the past seven years and net NPA ratio is lowest in the past 30-32 quarters.
Domestic deposits at Rs 10.79 lakh crore grew 9.2% YoY in Q3FY23. Gross advances stood at Rs 18.8 lakh crore in December Quarter 2022 against Rs 9.88 lakh crore in the same period previous year. Gross advances grew 11.2% YoY in Q3FY23.
The bank’s loan book (advances) is mainly segregated into retail, agriculture, MSME and corporate loans. Agriculture and corporate loan segments both reported 20% YoY growth followed by retail at 11% YoY and MSME at 6.5% YoY growth in Q3FY23.
