Canara Bank Q1 net profit rises 22 pc to Rs 4,752 cr on decline in bad loans

New Delhi, Jul 24 (PTI) State-owned Canara Bank on Thursday posted a 22 per cent growth in standalone net profit to Rs 4,752 crore during the first quarter of the current financial year, supported by a decline in bad loans.

The Bengaluru-based bank had earned a net profit of Rs 3,905 crore in the same quarter of the previous fiscal year.

The total income rose to Rs 38,063 crore during the June quarter from Rs 34,020 crore in the same quarter of FY25, Canara Bank said in a regulatory filing.

Interest earned by the bank increased to Rs 31,003 crore compared to Rs 28,701 crore in the June quarter FY25.

However, its net interest income declined by 2 per cent to Rs 9,009 crore against Rs 9,166 crore in the same quarter a year ago.

The net interest margin (NIM) of the bank rose to 2.9 per cent from 2.55 per cent in the year-ago period, Canara Bank MD and CEO K Satyanarayana Raju said.

He also said the bank is aiming for listing of one of its subsidiaries in the current quarter and another in the next quarter, depending on the regulatory approval.

Canara Bank has already initiated the process for listing of asset management joint venture Canara Robeco AMC. Besides, it is also planning a listing of its life insurance joint venture, Canara HSBC Life Insurance Company.

Canara Bank has already approved the process of diluting a 14.5 per cent stake in its life insurance venture, Canara HSBC Life Insurance Company.

During the period under review, the operating profit of the bank increased to Rs 8,554 crore compared to Rs 7,616 crore in the same quarter a year ago.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 2.69 per cent of gross advances at the end of the June quarter from 4.14 per cent a year ago.

Gross advances of the bank rose 12 per cent to Rs 10,96,329 crore during the first quarter of the current financial year.

Similarly, net NPAs, or bad loans, declined to 0.63 per cent against 1.24 per cent in the year-ago period.

As a result, provisions for bad loans declined to Rs 1,845 crore during the first quarter compared to Rs 2,171 crore in the year-ago period.

Its provision coverage ratio (PCR) improved to 93.17 per cent from 89.22 per cent.

At the same time, Return on Assets (ROA) improved to 1.14 per cent for June 2025 from 1.05 per cent in June 2024.

Capital adequacy ratio of the bank rose to 16.52 per cent from 16.38 per cent in the same quarter of FY25.

Global Business increased by 10.98 per cent to Rs 25,63,984 crore as af June 2025, while global deposits rose by 9.92 per cent to Rs 14,67,655 crore. PTI DP DP BAL BAL