MUMBAI, 25 JULY, 2022 (GPN): Public Sector Lender Canara Bank today announced the Bank’s (Q1FY23) FINANCIAL RESULTS FOR THE QUARTER ENDED 30th JUNE 2022.

Key Highlights (3 Months ended) (June 2021 V/s June 2022)

• Net Profit stood at Rs 2022 Cr against Net Profit of Rs 1177 Cr for June-2021
• Operating Profit stood at Rs.6606 Cr and grew by 20.53%
• Non-Interest Income grew by 24.55%
• Fee based income grew by 17.95%
• Cost to Income Ratio declined by 210 bps
• Global Business grew by 11.45%
• Gross Advances grew by 14.47%
• Agricultural & Allied Credit grew by 18.42%
• Retail Credit grew by 11.56% with Housing loan at 16.03%
• RAM Credit grew by 14.85%, it constitutes 56% of Total Advances
• Gold Loan grew by 26.20%, it crossed Rs 100000 Cr milestone
• CASA Deposits increased by 8.76%
• Retail term deposit grew by 6.15%
• Gross NPA Ratio down by 152 bps
• Net NPA Ratio down by 98 bps
• Provision Coverage Ratio (PCR) at 84.51% improved by 333 bps
• CRAR stood at 14.91% as at June 2022. Out of which Tier-I is 12.13% and Tier-II is 2.78%
• Return on Assets improved to 0.65% for Q1FY23 against 0.41% for Q1FY22 
• Return on Equity improved to 16.33% for Q1FY23 against 11.53% for Q1FY22

Key Summary of Business Performance (as on 30.06.2022)

         Business

• Global Business increased by 11.45% (y.o.y) to Rs 1901776 Cr as at June 2022 with Global Deposits at Rs 1118122 Cr 9.42% (y.o.y) and Global Advance (gross) at Rs 783654  Cr 14.47% (y.o.y)
• Domestic Deposit of the Bank stood at Rs 1052907 Cr as at June 2022 with growth of 8.49% (y.o.y)
• Domestic Advances (gross) of the Bank stood at Rs 748140 Cr as at June 2022 grew by 13.14% (y.o.y)
• Retail lending Portfolio increased 11.56% (y.o.y) to Rs 128615 Cr as at June 2022
  • Housing Loan Portfolio increased 16.03% y.o.y to Rs 75578 Cr
• Advances to Agriculture grew by 18.42% (y.o.y) to Rs 185680 Cr as at June 2022

Asset Quality Improves

Slippage ratio improved 2 basis points (bps) sequentially to 0.36 percent during the reporting quarter, while credit cost trimmed to 1.38 percent from 1.53 percent the last quarter.

• Gross Non-Performing Assets (GNPA) ratio stood at 6.98% as at June 2022 as against 7.51% at March 2022, 8.50% as at June 2021.
• Net Non-Performing Assets (NNPA) ratio stood at 2.48% as at June 2022 as against 2.65% as at March 2022,3.46% as at June 2021.
• Provision Coverage Ratio (PCR) improved to 84.51% as at June 2022 from 81.18% as at June 2021.

Capital Adequacy

• CRAR stood at 14.91% as at June 2022 (14.90% as at March 2022). Out of which Tier-I is 12.13% (11.91% as at March 2022), CET1 is 10.49% (10.26% as at March 2022) and Tier-II is 2.78% (2.99% as at March 2022).
• The Capital Raising Plan for FY-23:

AT-1 Bonds     : Rs.5500 Cr

Tier II Bonds   : Rs.3500 Cr

Priority Sector & Financial Inclusion

• The Bank has achieved Targets in Priority Sector at 51.32% and Agricultural Credit at 24.22% of ANBC as at June 2022, as against the norm of 40% and 18% respectively
• Credit to small and marginal farmers stood at 18.20% of ANBC, against the norm of 9.50%
• Credit to Weaker Sections stood at 24.25% of ANBC, against the norm of 11.50%

Network

• As on 30.06.2022, the Bank has 9732 Domestic Branches, out of which 3041 are Rural, 2751 Semi- Urban, 1997 Urban & 1943 Metro along with 10802 ATMs.  Bank is also having 3 overseas branches in London, Dubai and New York.

ADVANCES GROWTH ROBUST

Canara Bank’s total advances stood at Rs 7.83 lakh crore, up 14.5 percent YoY and 5.7 percent sequentially in the April-June quarter. This was higher than 10-11 percent average industry level credit growth witnessed recently.

Of the total loans, corporate loans accounted for 44 percent, agriculture loans 24 percent, while micro, small and medium enterprises (MSME) and retail loans accounted for 16 percent each.

Canara Bank’s total advances stood at Rs 7.83 lakh crore, up 14.5 percent YoY and 5.7 percent sequentially in the April-June quarter. This was higher than 10-11 percent average industry level credit growth witnessed recently.

Of the total loans, corporate loans accounted for 44 percent, agriculture loans 24 percent, while micro, small and medium enterprises (MSME) and retail loans accounted for 16 percent each.

Gold loan business grew 26.20 percent on year to over Rs 1 lakh crore as on June end, as per the bank’s Q1FY23 investor presentation.

Gold loan business grew 26.20 percent on year to over Rs 1 lakh crore as on June end, as per the bank’s Q1FY23 investor presentation.

Liquidators appointed in Syndbank subsidiary

Canara Bank informed in its notes to account adjoining the Q1 financial results that its wholly-owned subsidiary Syndbank Services Ltd is presently undergoing liquidation process and a liquidator has been appointed by the shareholders of the company on June 22.

As per reports, Syndbank is classified as a non-government run company and operates in the field of data processing. Incorporated in 2006, its authorized share capital was Rs 10 crore and its paid-up capital is Rs 25 lakh.-Ends.