Canara Bank Q1 profit surges 75% to ₹3,535 cr aided by fall in bad loans, interest income rise

State-owned Canara Bank on Monday reported a 75 % rise in net profit at ₹3,535 crore in the June quarter, helped by decline in bad loans and growth in interest income. The Bengaluru-based lender had posted a net profit of ₹2,022 crore in the year-ago period.

Total income in the first quarter of the current fiscal rose to ₹29,828 crore, from ₹23,352 crore in the same period a year ago, Canara Bank said in a regulatory filing.

Interest earned by the bank improved to ₹25,004 crore over ₹18,177 crore in June 2022.

The bank's asset quality showed improvement as gross non-performing assets (NPAs) declined to 5.15 %of gross advances at the end of the June quarter, from 6.98 %a year ago.

Similarly, net NPAs or bad loans declined to 1.57%, as against 2.48 %in the year-ago period.

As a result, provision for bad loans came down to ₹ 2,418 crore, as against ₹ 2,673 crore allocated in the same quarter a year ago.

Capital Adequacy Ratio of the bank increased to 16.24%, as compared to 14.91 %at the end of June 2022.

Pursuant to proposed bipartite agreement in wage revision (due with effect from November, 2022), an estimated provision of ₹ 344.69 crore has been made towards this for the quarter ended June 30, 2023, it said.