Canara Bank recorded a 10.7 per cent growth in net profit at Rs 1,007.88 crore during the second quarter of this fiscal, achieved on the back of a 52.5 per cent increase in net interest income.
Last, year, the bank's net profit during the corresponding quarter was Rs 910.52 crore. The net interest income for the reporting quarter grew to Rs 2,003.3 crore (Rs 1,313.67 crore).
Other income fell to Rs 499.62 crore (Rs 892.94 crore), mainly due to a negligible treasury gains this year compared with the same period last year.
A 75 basis points reduction in cost of deposits to 5.69 per cent led to an increase in net interest margin (NIM) at 3.16 per cent, despite a dip in yield on advances to 9.61 per cent (10.02 per cent). The cost of deposits has reduced because of a significant reduction in high-cost deposits.
The bank recorded a 23 per cent growth in Current Account Savings Account (CASA) and its CASA ratio now stands at 30.1 per cent.
Gross NPAs stood at 1.49 per cent (1.6 per cent), while net NPAs also improved to 1.06 per cent (1.16 per cent). The bank's provision coverage ratio stood at 77.06 per cent.
The bank is adequately capitalised at 13.88 per cent, and has adequate headroom for capital augmentation in the future since the government holding is at 73.17 per cent.
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