Canara Bank Shares Rise 4%, Hit 52-Week High as Q2 Net Profit Jumps 19% to ₹4,774 Crore
Canara Bank has made headlines with an impressive Q2 performance, showcasing a remarkable 19% increase in net profit, reaching ₹4,774 crore. This robust growth stems from several factors, such as improved asset quality, lower credit costs, and strong growth in both deposits and advances.
Key Highlights from Q2 Results
– Net Profit Surge: ₹4,774 crore, up from ₹4,014 crore in the same quarter last year.
– Net Interest Income: Experienced a slight decline of 2%, totaling ₹9,141 crore, compared to ₹9,315 crore in the previous year.
– Operating Profit: Increased by 12.20%, reaching ₹8,588 crore, driven by strong performance in crucial business segments.
– Global Business Growth: A 13.55% year-on-year expansion to ₹26,78,963 crore, fueled by significant growth in deposits and advances.
– Global Deposits: Rose by 13.40% to ₹15,27,922 crore.
– Global Advances: Increased 13.74% year-on-year to ₹11,51,041 crore.
Asset Quality Improvement
– Gross Non-Performing Assets (GNPA): Improved by 138 basis points year-on-year to 2.35%.
– Net NPA: Decreased by 45 basis points to 0.54%, reflecting effective credit risk management.
– Credit Cost: Improved to 0.68%, a reduction of 29 basis points year-on-year.
– Provision Coverage Ratio (PCR): Strengthened to 93.59%, marking an increase of 270 basis points year-on-year.
Deposits and Other Metrics
– CASA Deposits: Grew by 10.53% year-on-year to ₹4,28,115 crore, with a notable 62.84% increase in current deposits.
– Retail Term Deposits: Contributed ₹5,63,683 crore, witnessing a growth of 9.80% year-on-year.
At around 2:20 PM on October 30, shares of Canara Bank traded at ₹134, up 4%, marking a 36% increase over the past six months. As the bank continues to show robust performance, confidence in its long-term growth trajectory remains strong.
This significant rise in Canara Bank’s shares highlights the bank’s successful strategies in enhancing profitability and asset quality, ensuring a bright outlook for investors and stakeholders alike.