Canara Bank Reports Strong Financial Performance in Q4 of FY24

Public sector lender Canara Bank has announced robust financial results for the fourth quarter of the fiscal year 2023-24, showcasing a noteworthy 18.33% year-on-year increase in net profit. The bank’s net profit for Q4 stood at Rs 3,757 crore, primarily driven by a rise in interest income and a decrease in provisions.

K. Satyanarayana Raju, the Managing Director & CEO of Canara Bank, mentioned that despite facing stiff competition in deposit mobilization, the bank witnessed an improvement in interest margins. Canara Bank’s Capital Adequacy Ratio (CAR) stood strong at 16.28%, with common equity Tier-1 (CET1) at 11.58%.

The bank’s Net Interest Income (NII) for Q4 of FY24 expanded by 11.18% to reach Rs 9,580 crore, compared to Rs 8,617 crore in the same period of the previous year. Additionally, non-interest income, including fees and commissions, saw an increase of 9.23% to Rs 5,217 crore in Q4FY24.

Canara Bank reported a decline in provisions and contingencies, recording Rs 3,094 crore in Q4 compared to Rs 2,481 crore in the corresponding period last year. Advances grew by 11.34% year-on-year, reaching Rs 9.6 trillion by the end of March 2024, with notable growth in segments like retail, agriculture, and MSME, totaling Rs 5.41 trillion.

Furthermore, total deposits rose by 11.29% year-on-year to Rs 13.12 trillion, with the bank expecting a 10% growth in advances and a 9% growth in deposits for the fiscal year 2025. Canara Bank’s Gross Non-Performing Asset (GNPA) ratio decreased to 4.23% in Q4FY24, indicating a positive trend in asset quality management.