Net interest income (NII) or core income earned by lenders increased by 1.1% over last year to Rs 9,252 crore. A CNBC-TV18 poll had predicted the figure to be Rs 9,453 crore.
Net profit rose 25.6% year-on-year to Rs 5,155 million, exceeding the CNBC-TV18 poll estimate of Rs 4,932 million. However, it should be noted that the increase in profitability is due to increases in other revenue components. Other income for the quarter rose 36% year-on-year to Rs 7,809.94 crore from Rs 5,820 crore in the year-ago period.
Lenders’ asset quality improved from the previous quarter. Gross non-performing assets stood at 2.08% from 2.35% in September, while net NPAs stood at 0.45% from 0.54% in the previous quarter.
Provisions at the end of the quarter increased marginally to Rs 2,414 billion from Rs 2,354 billion in September.
In an investor presentation, Canara Bank reported that global deposits rose 13.6% year-on-year to Rs 11.92 billion, while global deposits rose 12.95% year-on-year to Rs 15.21 billion. Both loan growth and deposit growth exceeded the guidance ranges set by lenders.
New losses for the quarter narrowed slightly to Rs 1,857 billion from Rs 2,031 billion in September, while write-offs remained at Rs 3,120 billion, lower than September’s Rs 3,463 billion.
Net interest margin (NIM) for the quarter decreased by 33 basis points year-on-year to 2.5% from 2.83% a year ago.
Canara Bank’s share price was trading 5.2% lower at ₹149.25 after the results were announced. The stock price has increased 66% over the past year.