Financial Insights

Canara Bank reports over 2x times increase in profits: Q3 results

Canara Bank’s profits rose to Rs 1,502 crores, registering over 2x times YoY growth as it beat the forecasts. Analysts expected its profit for the third quarter to be around Rs 1,340.2 crores. Its profits for the quarter ended on December 2020 stood at Rs 696.1 crores.

Its Net Interest Income stood at Rs 6,945 crores, surpassing the estimated figure of Rs 6,413 crores, increasing 14.1%. Its asset quality was the best in 24 quarters as its Gross NPA ratio fell to 7.8% in Q3 from 8.42% in Q2. Its Net NPAs saw a decline of over Rs 1,000 crores.

During Q3, Canara Bank’s global gross advances rose 9.3% on year to Rs 7.29 crore. Of these, retail loans grew 10% on year to Rs 1.23 lakh crore, agriculture and allied loans grew 11.9% to Rs 1.68 lakh crore and loans to micro, MSME grew 1.3% to Rs 1.15 lakh crore. Retail, agriculture and MSME loans formed 56% of the bank’s portfolio. Corporate loans, at Rs 3.2 lakh crore, grew 10.8% on year, as per the bank’s presentation.

Its Net Interest Margin rose to 2.83% and its operating profits rose 10%. Its CASA ratio rose to 34.6%. Canara bank rallied 5% to Rs 233 as there was major movement across bank nifty.

Highlight by Aman Agarwal.

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