Canara Bank's Net Profit Rises by 10% in Q1 Amid Bad Loan Reduction

State-owned Canara Bank reported a 10% growth in its net profit to Rs 3,905 crore for the first quarter ended June 30, primarily due to a reduction in bad loans. Total income increased to Rs 34,020 crore, driven by higher interest income. Asset quality also improved, with Gross NPAs moderating to 4.14% and net NPAs declining to 1.24%.

State-owned Canara Bank on Thursday reported a 10 per cent rise in its net profit to Rs 3,905 crore for the first quarter ended June 30, attributing the increase to a reduction in bad loans.

The Bengaluru-based lender had earned a net profit of Rs 3,535 crore in the corresponding quarter of the previous year.

During the quarter, the bank's total income surged to Rs 34,020 crore, up from Rs 29,823 crore a year earlier, according to Canara Bank's regulatory filing. Interest income rose to Rs 28,701 crore, compared to Rs 25,004 crore in the same period last year.

On the asset quality front, the bank's Gross Non-Performing Assets (NPAs) reduced to 4.14 per cent of gross advances as of June 30, 2024, down from 5.15 per cent at the end of the first quarter of the previous fiscal year. Net NPAs also decreased to 1.24 per cent of advances, from 1.57 per cent at the end of the first quarter last year.

As a consequence, provision for bad loans declined to Rs 2,171 crore, compared to Rs 2,418 crore in the same quarter a year ago. The Capital Adequacy Ratio (CRAR) slightly improved to 16.28 per cent, up from 16.24 per cent on June 30, 2023.

(With inputs from agencies.)