Canara Bank Q3 FY25 Results: Net Profit Up 12% to Rs 4,104 Crore, NII Declines 3%

Canara Bank Q3 Results: Profit Rises 12% YoY to Rs 4,104 Crore, NII Declines 3%

Canara Bank reported a 12% year-on-year (YoY) increase in net profit for the third quarter of FY25, reaching Rs 4,104 crore. However, the bank’s net interest income (NII) fell by 3% YoY to Rs 9,149 crore. Despite the decline in NII, the bank showcased strong operational performance with improved asset quality and growth in key business segments.

Key Highlights of Canara Bank Q3 Results

Financial Performance

• Net Profit: Increased by 12% YoY to Rs 4,104 crore.
• Net Interest Income (NII): Declined by 3% YoY to Rs 9,149 crore.
• Pre-Provision Operating Profit (PPOP): Surged by 15% YoY to Rs 7,837 crore, up from Rs 6,805 crore in the same quarter last year.
• Provisions: Rose by 26% YoY to Rs 2,398 crore.
• Fee-Based Income: Grew by 23% YoY to Rs 2,185 crore.

Asset Quality Improvement

• Gross NPA Ratio: Improved to 3.34% in December 2024, down from 3.73% in September 2024 and 4.39% in December 2023.
• Net NPA Ratio: Declined to 0.89% in December 2024, compared to 0.99% in September 2024 and 1.32% in December 2023.
• Provision Coverage Ratio (PCR): Stood at 91.26% in December 2024, up from 90.89% in September 2024 and 89.01% in December 2023.

Business Growth

Global Business

• Global Business: Increased by 9% YoY to Rs 24.19 lakh crore.
• Global Deposits: Grew by 8% YoY to Rs 13.69 lakh crore.
• Global Advances: Rose by 10% YoY to Rs 10.49 lakh crore.

Domestic Business

• Domestic Deposits: Increased by 8% YoY to Rs 12.57 lakh crore.
• Domestic Advances: Jumped by nearly 10% YoY to Rs 9.87 lakh crore.

Retail Credit Growth

• Retail Credit: Grew by 35.46% YoY.
• Housing Loans: Increased by 12.26% YoY.
• Vehicle Loans: Rose by 17.26% YoY.

Market Reaction

Following the Q3 results, Canara Bank shares fell over 3% in Monday afternoon trade. Investors may have reacted to the decline in net interest income and increased provisions, despite the overall improvement in profitability and asset quality.

Conclusion

Canara Bank’s Q3 FY25 results reflect a mixed performance, with strong profit growth and improved asset quality offset by a decline in net interest income. The bank’s focus on retail credit and business expansion continues to drive growth, but challenges in maintaining NII and managing provisions remain key areas to watch. Investors should carefully analyze these factors before making investment decisions.

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Categories: asset quality, Canara Bank, net interest income, net profit, Q3 Results