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Canara Bank’s net profit during the quarter ended June 30 (Q1FY25) grew by 10.5 per cent year-on-year (YoY) to Rs 3,905 crore backed by non-interest income like fees and recoveries. It had posted a net profit of Rs 3,535 Crore in the quarter ended June 2023 (Q1Fy24).
Sequentially, the Bengaluru-based public-sector lender’s profit increased 3.94 per cent from Rs 3,757 crore in the quarter ended March 2024 (Q4 of FY24). Its stock was trading 0.53 per cent higher at Rs 113.1 share on BSE.
NII expanded 5.77 per cent to Rs 9,166 crore in Q1 of FY25 against Rs 8,666 crore in the same quarter a year ago. Sequentially, NII declined by 4.32 pr cent from Rs 9,580 crore in Q4FY24, according to an analyst presentation filed with BSE.
Net interest margin (NIM) moderated by 15 basis points (bps) to 2.9 per cent in Q1 of FY25 against 3.05 per cent in the quarter ended June 2023 (Q1Fy24). Sequentially, it fell from 3.07 per cent in Q4Fy24.
In post result virtual media interaction, K. Satyanarayana Raju, the bank’s managing director and chief executive said, the incremental cost of deposits has risen. The NIM is expected to gradually increase in coming quarters to 2.95-3.0 per cent in Fy25.
While non-interest income rose by 10.38 per cent YoY to Rs 5,319 crore, sequentially it rose marginally from Rs 5,217 crore in Q4FY24. Fee-based income was up 16.75 per cent YoY to Rs 1,910 crore. Commissions and exchanges rose 34.2 per cent YoY to Rs 353 crore. The recoveries from written-off accounts grew 45.48 per cent YoY to Rs 1,158 crore. However, the treasury income fell by 6.16 per cent to Rs 503 crore.
