Canara Bank Q1 Profit Jumps 72 PC To Rs 2,022 Cr
Canara Bank has reported a significant jump of nearly 72 per cent in its standalone net profit for the first quarter of the fiscal year 2022-23. The bank's net profit reached Rs 2,022.03 crore, showcasing robust growth driven by a healthy expansion in core income and a reduction in bad loans. In comparison, during the same quarter of the previous year, the bank had posted a net profit of Rs 1,177.47 crore.
According to a regulatory filing, Canara Bank's total income during April-June 2022-23 increased to Rs 23,351.96 crore, marking a notable rise from Rs 20,940.28 crore reported in the corresponding period of the previous year. The bank's core income generated from interest saw an impressive growth of 8.3 per cent, amounting to Rs 18,176.64 crore for the quarter.
An encouraging aspect for Canara Bank is the improvement in its asset quality. The gross non-performing assets (NPAs) dropped to 6.98 per cent of gross advances by the end of June 30, 2022, compared to 8.50 per cent at the end of June 2021. In terms of value, the gross NPAs or bad loans stood at Rs 54,733.88 crore, down from Rs 58,215.46 crore.
The bank's net bad loans ratio also witnessed a decline, coming down to 2.48 per cent (amounting to Rs 18,504.93 crore) from 3.46 per cent (equivalent to Rs 22,434 crore). However, the provision (other than tax) for bad loans and contingencies for Q1FY23 increased to Rs 3,690 crore from Rs 3,458.74 crore in the year-ago quarter.
On a consolidated basis, Canara Bank's net profit demonstrated a remarkable 88 per cent surge, reaching Rs 2,058.31 crore in the June quarter compared to Rs 1,094.79 crore in the same period of the previous year. Additionally, the total income for the consolidated entity grew to Rs 23,739.27 crore from Rs 23,018.96 crore.
At the Bombay Stock Exchange (BSE), Canara Bank's stock was trading 1.42 per cent higher at Rs 232.25, reflecting positive market sentiment towards the bank's performance.
