Canara Bank Q2 net profit rises 8.4% to Rs 5,175 cr; biz crosses Rs 30 lakh cr

Bengaluru: Canara Bank’s net profit rose 8.4% year on year to Rs 5,175 crore in the September quarter, while global business grew 15.8% to Rs 30.7 lakh crore, driven by strong credit growth and higher core income.“We have crossed a significant milestone of Rs 30 lakh crore in total business. Net interest income grew 20.3% to an all-time high of around Rs 11,000 crore, and we recorded our highest-ever quarterly profit in absolute terms,” said Brajesh Kumar Singh, managing director and CEO of Canara Bank.Global advances grew 19.4% year on year to Rs 13.7 lakh crore, while global deposits rose 13.1% to Rs 16.9 lakh crore. Domestic advances increased 16.9% to Rs 12.6 lakh crore, and domestic deposits grew 10.9% to Rs 15.4 lakh crore.Retail lending expanded 31.61% to Rs 3.3 lakh crore. Housing loans grew 17.3% to Rs 1.3 lakh crore, while overall retail, agriculture and MSME (RAM) credit increased 21% to Rs 8.1 lakh crore. Vehicle loans grew more than 25%.“We have a pipeline of around Rs 50,000 crore in large corporate lending, which should materialise this quarter. With the festive season driving retail demand and consumption, I expect the quarter to be good,” Singh said.Asset quality improved, with the gross non-performing assets (GNPA) ratio declining to 1.33% in the Sept quarter from 2.3% a year earlier. The net NPA ratio fell to 0.30% from 0.54%. The provision coverage ratio improved to 95.34%.“Our guidance was to bring gross NPA down to 1.5% by March next year. We have already reduced it to 1.3% and expect it to improve further,” Singh said.You use AI every day. Now get your AI Quotient. Take the AIQ test.