Canara Bank Ltd. (NSE: CANBK) is a public sector bank in India with its headquarters in Bangalore, Karnataka. The bank provides various financial products and services to its customers, including personal and commercial banking, insurance, asset management, and treasury services.
Canara Bank announced its Q3FY23 results, showing a 13.63% growth in global business, which crossed the Rs 20,00,000 crore milestone. Net profit for the quarter stood at Rs 2,882 crore, a 92% increase from the same quarter a year ago. The bank’s operating profit also increased by 19.80%, standing at Rs 6,952 crore, while gross advances grew by 16.65%.
Gold loan grew by 34.21%, and net-interest income grew by 23.81%. The bank’s non-interest income increased by 10.35%, and fee-based income grew by 13.02%. The cost to income ratio decreased by 184 bps, while RAM credit grew by 13.81%, constituting 54% of total advances. Retail credit grew by 11.30%, with housing loans at 15.81%.
The bank’s gross NPA ratio declined to 5.89%, down by 191 bps, and net NPA ratio decreased to 1.96%, down by 90 bps, with the provision coverage ratio (PCR) at 86.32%, improved by 306 bps. The capital adequacy ratio stood at 16.72%, with CET1 at 11.45%, while the return on equity improved by 630 bps to 18.38%.
Additionally, the bank’s net interest income (NII) increased by 24% to Rs 8,600 crore, and its net interest margin (NIM) stood at 3.04%. Canara Bank’s provisions and contingencies declined to Rs 3,121 crore, and its loan growth stood at 18% YoY. The bank’s capital adequacy ratio rose to 16.72% in the December quarter, and its gross non-performing assets (NPAs) declined to 5.89%.