State-owned lender Canara Bank on July 25 reported a 10.5 percent on-year rise in net profit at Rs 3,905.28 crore in the first quarter of the current financial year.

Sequentially, net profit was up 4 percent.

Asset quality

Gross non-performing asset (NPA) ratio of the bank stood at 4.14 percent in the June quarter against 4.23 percent in the previous quarter and 5.15 percent in the year-ago period.

In absolute terms, gross NPA of the bank stood at Rs 40,356.38 crore as on June 30, as compared to Rs 40,604.57 crore as on March 31, and Rs 45,727.37 crore as on June 30, 2023.

Net NPA stood at Rs 11,701.77 crore in April-June quarter, as compared to Rs 11,822.83 crore in a quarter ago period and Rs 13,461.43 crore in a year ago period.

Provision Coverage Ratio (PCR) at 89.22 percent improved by 118 basis points (bps).

In April-June quarter, fresh slippages of the bank stood at Rs 3,015 crore, as compared to Rs 3,188 crore in a year ago period.

Deposits

In the reporting quarter, total domestic deposit of the bank rose 11.47 percent on a yearly basis to Rs 12.31 lakh crore. In a year ago period, total domestic deposit stood at Rs 11.05 lakh crore.

In the domestic total deposit, CASA deposits grew by 4.66 percent on-year to Rs 3.81 lakh crore. Of the total, savings account stood at Rs 3.32 lakh crore, which was up 3.62 percent.

While, the term deposits grew 14.82 percent on-year to Rs 8.50 lakh crore. Of this, Retail Term Deposit stood at Rs 5.15 lakh crore.

On the other hand, global deposits of the state-owned lender stood at Rs 13.36 lakh crore, which was up 11.97 lakh crore on-year.

Advances

Domestic gross advances of the bank grew 9.17 percent on-year to Rs 9.21 lakh crore. RAM credit has grown 12.26 percent on-year to Rs 5.52 lakh crore.

In the RAM category, retail advances increased to Rs 1.76 lakh crore in April-June quarter, as compared to Rs 1.43 lakh crore in a year ago period, which registered a growth of 23.54 percent.

Agriculture and allied advances grew 8.14 percent on-year in the reporting quarter to Rs 2.53 lakh crore.

Advances to corporates and others grew 6.87 percent on a yearly basis to Rs 4.24 lakh crore, according to the investor presentation of the bank.

Global Gross Advance of the lender increased by 9.86 percent on-year to Rs 9.8 lakh crore in April-June quarter.

In the reporting quarter, Canara Bank has reduced their credit to non-banking finance companies by 18.15 percent 0n-year and 10.19 percent on a quarterly basis to Rs 1.19 lakh crore.

Also, the lender reduced credit to petroleum, poal products & nuclear fuels industry by 11.82 percent on-year and 3.62 percent on-quarter.

Net NPA ratio of the lender declined to 1.24 percent from 1.27 percent in the March quarter and 1.57 percent in the Q1FY24.