Canara Bank Reports 21.69% Rise in Q1 Net Profit, Asset Quality Improves

2 min read     Updated on 24 Jul 2025, 03:15 PM
scanxBy ScanX News Team
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Overview

Canara Bank's Q1 net profit rose 21.69% to ₹4,752.00 crore. Operating profit increased 12.32% to ₹8,554.00 crore, while total income grew 11.88% to ₹38,063.00 crore. Asset quality improved with GNPA ratio declining to 2.69% and NNPA ratio to 0.63%. Global business expanded 10.98% to ₹25,63,984.00 crore. The bank's digital transactions increased to 273.98 crore. Separately, the Enforcement Directorate alleged Anil Ambani defrauded Canara Bank of ₹1,000.00 crores.

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*this image is generated using AI for illustrative purposes only.

Canara Bank , one of India's leading public sector banks, has reported a robust financial performance for the first quarter. The bank's net profit surged by 21.69% year-on-year to ₹4,752.00 crore for the quarter ended June 30, up from ₹3,905.00 crore in the same period last year.

Key Financial Highlights

  • Operating profit increased by 12.32% to ₹8,554.00 crore, compared to ₹7,616.00 crore in the previous year's quarter.
  • Total income rose by 11.88% to ₹38,063.00 crore, driven by growth in both interest and non-interest income.
  • Net Interest Income (NII) slightly decreased by 1.71% to ₹9,009.00 crore.
  • Non-interest income saw a significant jump of 32.73% to ₹7,060.00 crore.

Asset Quality Improvement

The bank's asset quality showed notable improvement:

  • Gross Non-Performing Assets (GNPA) ratio declined to 2.69% as of June 30, from 4.14% a year ago.
  • Net Non-Performing Assets (NNPA) ratio improved to 0.63%, down from 1.24% in the previous year.
  • Provision Coverage Ratio (PCR) strengthened to 93.17%, up by 395 basis points year-on-year.

Business Growth

Canara Bank witnessed substantial growth in its business segments:

  • Global business increased by 10.98% year-on-year to ₹25,63,984.00 crore.
  • Global deposits grew by 9.92% to ₹14,67,655.00 crore.
  • Global advances rose by 12.42% to ₹10,96,329.00 crore.
  • Retail credit saw a significant surge of 33.92% to ₹2,35,418.00 crore.

Other Key Metrics

Metric Value Change
Return on Assets (RoA) 1.14% Up by 9 basis points year-on-year
Capital Adequacy Ratio 16.52% -
Common Equity Tier 1 (CET-1) ratio 12.29% -
Earnings per share (EPS) ₹21.01 Up by 21.66% from the previous year

Digital Banking and Network Expansion

The bank continued to focus on digital initiatives and network expansion:

  • Digital transactions increased to 273.98 crore, up from 207.68 crore in the previous year.
  • The bank's network comprised 9,861 branches and 7,907 ATMs as of June 30.

Canara Bank's strong performance in Q1 reflects its resilience and strategic focus on growth and asset quality improvement. The significant rise in net profit, coupled with the reduction in NPAs, positions the bank well for sustained growth in the coming quarters.

Enforcement Directorate Allegations

In a separate development, the Enforcement Directorate has alleged that Anil Ambani defrauded Canara Bank of ₹1,000.00 crores. This allegation involves significant financial misconduct affecting the bank. However, it's important to note that these are allegations at this stage, and further details are awaited as the investigation progresses.

The bank's management has not yet commented on this matter, and it remains to be seen how this development might impact the bank's operations and reputation going forward.

Historical Stock Returns for Canara Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.42%-3.22%+0.05%+20.48%-1.01%+455.47%
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Canara Bank's Q1 Profit Surges 21.69% to ₹4,752 Crore, Asset Quality Improves

1 min read     Updated on 24 Jul 2025, 01:30 PM
scanxBy ScanX News Team
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Overview

Canara Bank's Q1 net profit rose to ₹4,752 crore, up 21.69% year-over-year. The bank showed improved asset quality with gross NPA ratio decreasing to 2.69% from 4.14%. Global business grew by 10.98% to ₹25,63,984 crore. Retail credit surged by 33.92%, and the bank exceeded priority sector lending targets. Capital Adequacy Ratio stood at 16.52% under Basel III norms.

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*this image is generated using AI for illustrative purposes only.

Canara Bank , one of India's leading public sector banks, reported a robust performance for the first quarter, with significant improvements in profitability and asset quality.

Strong Profit Growth

The bank's net profit for Q1 rose to ₹4,752 crore, marking a substantial 21.69% increase from ₹3,905 crore in the same quarter last year. This impressive growth outpaced analysts' expectations of ₹4,140 crore.

Improved Asset Quality

Canara Bank demonstrated notable progress in managing its asset quality:

  • Gross Non-Performing Asset (NPA) ratio improved to 2.69% from 4.14% year-over-year.
  • Net NPA ratio decreased to 0.63% from 1.24% in the corresponding quarter.
  • Provision Coverage Ratio (PCR) strengthened to 93.17%, up by 395 basis points year-on-year.

Key Financial Highlights

Particulars Q1 (Current) Q1 (Previous) YoY Change
Net Profit ₹4,752 crore ₹3,905 crore 21.69%
Operating Profit ₹8,554 crore ₹7,616 crore 12.32%
Net Interest Income ₹9,009 crore ₹9,166 crore -1.71%
Other Income ₹7,060 crore ₹5,319 crore 32.73%
Gross NPA Ratio 2.69% 4.14% -145 bps
Net NPA Ratio 0.63% 1.24% -61 bps

Business Growth

The bank reported strong growth across various business segments:

  • Global business increased by 10.98% year-on-year to ₹25,63,984 crore.
  • Global deposits grew by 9.92% to ₹14,67,655 crore.
  • Global advances expanded by 12.42% to ₹10,96,329 crore.

Retail and Priority Sector Performance

Canara Bank showed significant growth in its retail and priority sector lending:

  • Retail credit surged by 33.92% year-on-year to ₹2,35,418 crore.
  • Housing loans grew by 13.92% to ₹1,09,490 crore.
  • Vehicle loans increased by 22.09% to ₹21,620 crore.

The bank exceeded mandated targets under priority sector lending, with total priority sector advances at 45.63% of Adjusted Net Bank Credit (ANBC) against the 40% norm.

Capital Adequacy

As of June 30, Canara Bank's capital position remained strong:

  • Capital Adequacy Ratio stood at 16.52% under Basel III norms.
  • Common Equity Tier 1 (CET-1) ratio was at 12.29%.

Outlook

With improved asset quality, strong business growth, and a robust capital position, Canara Bank appears well-positioned for sustained performance in the coming quarters. The bank's focus on retail lending and priority sector advances, coupled with its ability to exceed regulatory norms, demonstrates its commitment to balanced and inclusive growth.

Historical Stock Returns for Canara Bank

1 Day5 Days1 Month6 Months1 Year5 Years
-2.42%-3.22%+0.05%+20.48%-1.01%+455.47%
Canara Bank
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