Canara Bank Q4 net up 65% to Rs 1,666 Cr on better net interest margins

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Public sector lender Canara Bank recorded a 64.9 per cent year-on-year increase in net profit to Rs.

It had posted a net profit of Rs.1,010.4 crore in the fourth quarter of FY21.



For FY22, net profit increased by percent to Rs.5,678.4 crore from Rs.2,557.5 crore in FY21.

Recommend a dividend of Rs.6.50 per share (with a Rs.10 par value) for 2021-22, subject to shareholder nods.

The Bengaluru-based lender’s net interest income (NII) increased by 24.84 per cent to Rs.7,005 crore in Q4FY22 from Rs.5,622 crore in Q4FY21. Net interest margin (NIM) improved to 2.93 per cent for Q4FY22 versus 2.51 percent for Q4FY21.

Noninterest income fell 5.12 per cent yoy to Rs.4,462 crore in the fourth quarter of FY22.

Advances increased by 9.77 percent yoy to Rs.7.4 trillion as of the end of March 2022. The retail loan portfolio increased by 9.5 percent yoy to Rs.1.26 trillion as of March 2022. The public sector bank has a Advances growth estimated at 8 percent in FY23. said LV Prabhakar, said the executive director and executive director.

Deposits rose 7.47 per cent to Rs 10.86 trillion in March 2022. The share of low-cost deposits – current and savings accounts (CASA) – stood at 35.88. percent as of March 31, 2022, up from 34.33 percent in March 2021. It has set a target of 38 percent for FY23.

The asset quality profile improved, with gross non-performing assets (NPAs) declining from 8.93 percent in March 202 to 7.51 percent as of March 31, 2022. The net NPA was 2.65 percent at the end of March 2022, up from 3 percent 82 percent a year ago. The lender aims to reduce GNPAs to 6 percent and net NPAs to 2 percent by March 2023.

The provisioning coverage ratio for non-performing loans improved to 84.17 percent in March 2022 compared to 79.69 percent in the previous year. It has said it will improve it to 85 percent by March 2023.

The Bank’s Basel III capital adequacy ratio was 14.9 percent and the core capital ratio was 11.91 percent as of March 31, 2022.

The bank aims to raise up to Rs 9,000 crore in capital through additional Tier I and Tier II borrowings in 2022-23. The bank is not looking at raising equity for the time being, Prabhakar said. It had raised Rs 9,000 crore through shares, AT1 and Tier II bonds in FY22.

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