Canara Bank's Profits Skyrocket: A Financial Transformation

Canara Bank reported a 28% increase in net profit for the March quarter, reaching Rs 5,070 crore, attributed to reduced provisions and increased non-core income. The bank aims for 10-11% loan growth and improved NIMs, with plans to further reduce NPAs and consider a capital raising strategy.

Canara Bank, owned by the state, announced a significant 28% rise in its consolidated net profit for the March quarter, reaching Rs 5,070 crore. This financial boost comes as a result of decreased provisions and an increase in non-core income, marking a positive shift in the bank's economic performance.

Despite an 11% increase in loans, the bank experienced a slight dip in core net interest income by 1.44%, affected by a narrowing net interest margin. Notably, non-interest income saw a surge, particularly due to a substantial increase in recoveries from written-off accounts and treasury income.

Satyanarayana Raju, Canara Bank's MD and CEO, expressed confidence in maintaining robust loan and deposit growth in the coming fiscal year. The bank is also focused on reducing gross NPAs and evaluating a potential capital raising plan, as its capital adequacy remains strong at 16.39%.

(With inputs from agencies.)