Canara Bank September quarter profit rises 11% to Rs 4,015 crore

State-owned Canara Bank on Tuesday reported an 11 per cent rise in its net profit to Rs 4,015 crore in second quarter ended September 2024.

Bengaluru-based lender h earned a net profit of Rs 3,606 crore in same quarter a year ago.

Total income increased to Rs 34,721 crore during quarter under review against Rs 31,472 crore in same quarter last year, Canara Bank said in a regulatory filing.

bank reported an interest income of Rs 29,740 crore during quarter, higher than Rs 26,838 crore in same period a year ago.

On asset quality front, bank witnessed improvement with gross Non-Performing Assets (NPAs) declining to 3.73 per cent of gross loans by end of September 2024 from 4.76 per cent a year ago.

Similarly, net NPAs or b loans moderated to 0.99 per cent from 1.41 per cent at end of second quarter of previous fiscal.

Provision Coverage Ratio (PCR) rose to 90.89 per cent as of September 2024 against 89.22 per cent as of June 2024 and 88.73 per cent as of September 2023.

Capital equacy Ratio of bank too improved to 16.57 per cent from 16.20 per cent at end of second quarter of last year.

On a consolidated basis, bank's profit increased to Rs 4,188 crore over Rs 3,798 crore in Q2FY24.

Talking on quarterly numbers, Canara Bank Managing Director and Chief Executive Officer K Satyanarayana Raju said, bank's global business increased by 9.42 per cent to Rs 23,59,344 crore as of September 2024 with total deposits at Rs 13,47,347 crore, up 9.34 per cent, and total vance at Rs 10,11,997 crore, 9.53 per cent higher year-on-year.

Raju furr said that approval from finance ministry for Initial Public Offering ( IPO ) of Canara Robeco Asset Management Company (AMC) is expected shortly.

"RFP process is completed for Canara Robecco AMC IPO. timeline will remain same for an IPO. Department of Financial Services approval is expected in fortnight's time," Raju said during post-earnings call.

lender holds a 51 per cent stake in mutual fund. It plans to offlo a 13 per cent stake through IPO.

Last December, Canara Bank gave an in-principle approval to start process of listing its mutual fund subsidiary by way of an initial share sale.

Upon listing, this will mark entry of fifth mutual fund house into stock markets, joining ranks of HDFC AMC, Nippon Life India AMC, UTI Asset Management Company and itya Birla Sun Life AMC.

As of September 2024, bank h 9,658 branches, of which 3,115 are rural, 2,778 semi-urban, 1,918 urban and 1,847 metro along with 9,881 ATMs.

bank also has four overseas branches in London, New York, Dubai and IBU Gift City.