Canara Bank Q2 profit jumps 89% to Rs 2,525 cr
Published On: Thursday, October 20, 2022 | By: Team KnowMyStock
Canara Bank shares gained as much as 4 % on October 20 after it reported an 89 percent jump in net profit to Rs 2,525 crore in July-September (Q2 FY23), beating Street estimates by a wide margin, aided by lower tax costs and healthy net interest income. Higher other income and operating performance also supported profitability with improved asset quality. In the year-ago period, the state-owned lender had reported a net profit of Rs 1,333 crore. The total income also rose to Rs 24,932.19 crore during July-Sep this year against Rs 21,331.49 crore in the same period of 2020-21. According to a regulatory filing, its net interest income - or the difference between interest earned and interest paid - increased 18.5 percent to Rs 7,434 crore compared to Rs 6,273 crore. Non-interest revenue grew 13 % YoY to Rs 4,825 crore in the same period. Net interest margin (NIM), a measure of profitability, of the bank, stood at 2.86 % compared to 2.78 % in the previous quarter and 2.77 % a year ago.
The Bengaluru-based bank said it has shifted to a new tax regime resulting in a deferred tax reduction of Rs 2,451 crore.
The bank has improved its asset quality with gross non-performing assets (as a percentage of gross advances) falling 61 bps sequentially to 6.37 percent and net NPA was down by 29 bps QoQ to 2.19 percent for September FY23 quarter. Provisions and contingencies increased 8 percent YoY and declined marginally sequentially to Rs 3,636.81 crore. The provision coverage ratio improved to 85.36 percent in Q2FY23.
We are on Telegram!
JOIN our telegram channel to receive updates on Financial News and Stock and FNO Tips.
Click Here!
Follow Us On:
