Table of Content
Canara Bank Financial Results for the Quarter Ended 31st December 2023:
1. Profit Growth:
- Net Profit witnessed a substantial YoY increase of 26.86%.
- Global Business demonstrated a robust YoY growth of 9.87%.
2. Key Highlights (9 Months Ended – December 2023 vs. December 2022):
- Global Business: Achieved ₹22,13,360 Cr, indicating a notable growth of 9.87%.
- Gross Advances: Stood at ₹9,50,430 Cr, reflecting a substantial YoY increase of 11.69%.
- Net Profit: December 2023 recorded ₹3,656 Cr compared to ₹2,882 Cr in December 2022.
- Net Interest Income: Registered a growth of 9.50%, reaching ₹9,417 Cr.
- Net Interest Margin: Improved to 3.02%, a positive change of 9 basis points.
3. Credit Performance:
- RAM Credit: Experienced a notable growth of 14.56%, reaching ₹5,30,444 Cr from ₹4,63,038 Cr in December 2022.
- Retail Credit: Grew by 12.14%, with housing loan growth specifically at 12.07%.
4. Asset Quality:
- Gross NPA Ratio: Decreased to 4.39%, marking a reduction of 150 basis points.
- Net NPA Ratio: Improved to 1.32%, showing a decline of 64 basis points.
- Provision Coverage Ratio (PCR): Stood at an improved 89.01%, up by 269 basis points.
5. Capital Adequacy and Returns:
- CRAR (Capital to Risk-Weighted Assets Ratio): Maintained a strong position at 15.78% as of December 2023, with CET1 at 11.28%.
- Return on Assets (ROA): Improved to 1.01% for Q3 FY24 from 0.76% in Q3 FY23.
- Return on Equity (ROE): Showed growth, reaching 21.95% for Q3 FY24, compared to 18.38% in Q3 FY23.
Additional Read: Q3 Results Dashboard
Business Overview:
1. Global Business Growth:
- Global Business increased by 9.87% (YoY) to ₹22,13,360 Cr as of December 2023.
- Global Deposits reached ₹12,62,930 Cr, and Global Advances (gross) amounted to ₹9,50,430 Cr.
2. Domestic Operations:
- Domestic Deposits stood at ₹11,66,848 Cr as of December 2023, showing an 8.07% YoY growth.
- Domestic Advances (gross) reached ₹9,01,465 Cr, experiencing a substantial YoY growth of 12.56%.
3. Retail Lending:
- The Retail Lending Portfolio increased to ₹1,53,640 Cr, marking a growth of 12.14% YoY.
- Housing Loan Portfolio specifically grew by 12.07% YoY, reaching ₹91,800 Cr.
4. Agriculture & Allied Activities:
Advances to Agriculture & allied activities grew significantly by 19.26% YoY, reaching ₹2,42,470 Cr as of December 2023.
Asset Quality:
1. Non-Performing Assets:
- Gross Non-Performing Assets (GNPA) ratio stood at 4.39% in December 2023, showing a positive trend from 4.76% in September 2023 and 5.89% in December 2022.
- Net Non-Performing Assets (NNPA) ratio improved to 1.32% in December 2023, compared to 1.41% in September 2023 and 1.96% in December 2022.
2. Provision Coverage Ratio (PCR):
Provision Coverage Ratio (PCR) demonstrated improvement, reaching 89.01% in December 2023 from 86.32% in December 2022.
Capital Adequacy:
- Capital to Risk-Weighted Assets Ratio (CRAR) stood at a robust 15.78% as of December 2023.
- Breakdown: CET1 – 11.28%, Tier-I – 13.38%, Tier-II – 2.40%.
Priority Sector & Financial Inclusion:
- The Bank achieved impressive targets in Priority Sector at 45.91% and Agricultural Credit at 21.77% of ANBC as of December 2023, surpassing norms.
- Credit to small and marginal farmers stood at 15.18% of ANBC, exceeding the norm of 10%. Credit to Weaker Sections stood at 21.66% of ANBC, surpassing the norm of 12%.
Network:
- As of December 31, 2023, the Bank operates 9585 branches, including 3095 Rural, 2742 Semi Urban, 1906 Urban, and 1842 Metro branches, along with 10463 ATMs.
- Additionally, the Bank has three Overseas Branches located in London, New York, and Dubai.
Additional Check: Canara Bank Share Price
About Canara Bank
Canara Bank, renowned for its customer-centric approach, was established in July 1906 by Shri Ammembal Subba Rao Pai, a visionary philanthropist, in Mangalore, Karnataka. The bank has traversed diverse growth phases over its century-long existence, experiencing significant expansion after nationalisation in 1969, achieving national prominence in geographical reach and clientele. The 1980s witnessed the bank’s business diversification. Celebrating a century in June 2006, Canara Bank’s journey has been marked by numerous milestones, securing a premier position among Indian banks today.
Canara Bank boasts several noteworthy achievements, including pioneering the Inter-City ATM Network, securing ISO Certification for a Branch, articulating Good Banking through the Banks Citizen Charter, establishing an Exclusive Mahila Banking Branch, launching a Subsidiary for IT Consultancy, issuing credit cards for farmers, and providing Agricultural Consultancy Services. Evolving into a significant Financial Conglomerate, the bank has thirteen subsidiaries/sponsored institutions in India and abroad. As of September 2023, Canara Bank serves over 11.19 crore customers through a vast network of 9,518 branches and 12,118 ATMs/Recycler, spanning all Indian states and Union Territories.
Beyond commercial banking, Canara Bank has left a distinct mark in corporate social responsibilities, actively contributing to national priorities, promoting rural development, facilitating rural self-employment through training institutes, and championing financial inclusion objectives.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc
Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/60c2b720-e081-45a3-a910-2e4a8f748e6b.pdf
