Canara Bank has reported 33% growth in net profit at Rs 5002.66 crore for the quarter ended March 2025 (Q4FY2025). The bank has posted 1% decline in net interest income (NII), while the core fee income of the bank improved 20% in Q4FY2025. The Net Interest Margin (NIM) of the bank eased to 2.73% in Q4FY2025 compared to 3.07% in the corresponding quarter of previous year, while rose from 2.71% in the previous quarter.
On business front, the bank as has posted 11% growth in business with 12% increase in loan book. The asset quality of the bank was stable in Q4FY2025. Bank has marginally raised credit to deposit ratio to 73.7% at end March 2025 from 73.2% at end March 2024. CASA ratio of the bank has improved on sequential basis to 28.5% at end March 2025.
Asset quality improves: The bank has improved asset quality in Q4FY2025.
The fresh slippages of loans stood at Rs 2702 crore in Q4FY2025 compared with 2464 crore in previous quarter and Rs 3400 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 791 crore, upgradations at Rs 420 crore and the write-off of loans was at Rs 5022 crore in Q4FY2025. Provision coverage ratio improved to 92.70% at end March 2025 compared to 91.26% a quarter ago and 89.10% a year ago. The capital adequacy ratio of the bank stood at 16.3% with Tier I ratio at 14.4% at end March 2025. The risk weighted assets of the bank has increased 11% YoY to Rs 740322 crore end March 2025,| Asset Quality Indicators: Canara Bank | ||||||||
| ' | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Mar-24 | Variation | ' | |
| QoQ | YoY | ' | ||||||
| Gross NPA (Rs Crore) | 31530.03 | 35060.64 | 37733.30 | 40356.38 | 40604.57 | -10 | -22 | ' |
| Net NPA (Rs Crore) | 7353.31 | 9081.10 | 9777.44 | 11701.77 | 11822.83 | -19 | -38 | ' |
| % Gross NPA | 2.94 | 3.34 | 3.73 | 4.14 | 4.23 | -40 | -129 | ' |
| % Net NPA | 0.70 | 0.89 | 0.99 | 1.24 | 1.27 | -19 | -57 | ' |
| % PCR | 92.70 | 91.26 | 90.89 | 89.22 | 89.10 | 144 | 360 | ' |
| % CRAR - Basel III | 16.33 | 16.44 | 16.57 | 16.38 | 16.28 | -11 | 5 | ' |
| % CRAR - Tier I - Basel III | 14.37 | 14.55 | 14.64 | 14.37 | 13.95 | -18 | 42 | ' |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
Business Highlights:
Healthy business growth: The business of the bank has increased 11% YoY to Rs 2530215 crore end March 2025, driven by 12% surge in advances to Rs 1073332 crore. Deposits increased 11% to Rs 1456883 crore at end March 2025.
CASA deposits ratio declines: The CASA deposits of the bank increased 6% YoY to Rs 414976 crore at end March 2025. The current account deposits surged 22% to Rs 77841 crore, while saving account deposits increased 3% to Rs 337135 crore end March 2025. The CASA ratio eased to 28.5% at end March 2025 compared to 29.9% at end March 2024, while improved on sequential basis from 27.5% a quarter ago. The term deposits have increased 13% to Rs 1041907 crore end March 2025. Overseas deposits have jumped 29% to Rs 125746 crore end March 2025.
Robust retail loan growth: Advances growth was driven by retail loans rising 43% YoY to Rs 223366 crore at end March 2025, while credit to agriculture declined 2% to Rs 246904 crore and MSME moved up 8% to Rs 139857 crore at end March 2025. The corporate credit has increased 10% to Rs 463205 crore end March 2025. The overseas credit jumped 23% to Rs 64661 crore end March 2025.
Investment book of the bank increased 11% YoY to Rs 384667 crore at end March 2025. The SLR book moved up 7% to Rs 330910 crore, while non SLR book galloped 39% to Rs 50476 crore at end March 2025. The AFS book dipped 20% to Rs 56017 crore, while HTM book rose 4% to Rs 301807 crore at end March 2025.
Margins improve qoq, decline yoy: The bank has shown 28 bps YoY jump in cost of deposits to 5.28%, while yield on advances increased 12 bps YoY to 8.83% in Q4FY2025. Thus, the NIM has declined 31 bps YoY, while rose 2 bps qoq to 2.73% in Q4FY2025.
Branch expansion: The bank has added 33 branches and reduced 72 ATMs in Q4FY2025, taking overall tally to 9853 branches and 11954 ATM`s end March 2025.
Book value of the bank stood at Rs 103.0 per share at end March 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 93.2 per share at end March 2025.
Quarterly Performance
NII declines, as NIM dip: Bank has recorded 8% increase in the interest earned at Rs 31002.04 crore, while interest expenses increased 12% to Rs 21560.12 crore in Q4FY2025. NII declined 1% to Rs 9441.92 crore in the quarter ended March 2025.
Strong growth in the core fee income: Bank has posted strong 20% growth in core fee income to Rs 2335 crore, while the recoveries and jumped 30% to Rs 2471 crore and forex income 56% to Rs 276 crore. However, the treasury income rose 7% to Rs 711 crore, other income 8% to Rs 550 crore, leading to 22% jump in the overall non-interest income to Rs 6350.76 crore in the quarter ended March 2025.
Expenses ratio improves: The operating expenses of the bank rose 1% to Rs 7509.01 crore, as other expenses declined 8% to Rs 2726.22 crore, while employee expenses increased 7% to Rs 4782.79 crore in Q4FY2025. Cost to income ratio improved to 47.5% in Q4FY2025 compared with 50.1% in Q4FY2024, helping the Operating Profit to increase 12% to Rs 8283.67 crore.
Provisions and contingencies decline: The bank has shown -26% decline in provisions to Rs 1831.71 crore. The loan loss provisions increased 25% to Rs 2846 crore, while standard asset provisions increased 25% to Rs 55 crore and other provisions rebounded to Rs 263 crore. However, the bank has written back investment provisions of Rs 1334 crore in Q4FY2025 leading to overall decline in the provisions.
Effective tax rate declined to 22.5% in Q4FY2025 from 23.4% in Q4FY2024. Net Profit rose by 33% YoY to Rs 5002.66 crore during quarter ended March 2025.
Financial Performance FY2025:
Bank has posted 17% increase in net profit to Rs 17026.67 crore in the year ended March 2025 (FY2025). The net interest income increased 1% to Rs 37071.96 crore, while non-interest income moved up 18% to Rs 22452.80 crore, pushing up net total income by 7% to Rs 59524.76 crore in FY2025. The operating expenses increased 8% to Rs 28134.50 crore, while provision and contingencies declined 10% to Rs 8763.59 crore, allowing profit before tax to increase 15% to Rs 22626.67 crore in FY2025. The cost-to-income ratio rose slightly to 47.3% in FY2025 compared to 47.0% in FY2024. An effective tax rate declined to 24.7% in FY2025 compared to 26.1% in FY2024. The net profit has increased 17% to Rs 17026.67 crore in FY2025.| Canara Bank: Results | ||||||
| Particulars | 2503 (3) | 2403 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 31002.04 | 28807.35 | 8 | 119755.07 | 108687.93 | 10 |
| Interest Expended | 21560.12 | 19227.15 | 12 | 82683.11 | 72121.99 | 15 |
| Net Interest Income | 9441.92 | 9580.20 | -1 | 37071.96 | 36565.94 | 1 |
| Other Income | 6350.76 | 5217.83 | 22 | 22452.80 | 18966.44 | 18 |
| Net Total Income | 15792.68 | 14798.03 | 7 | 59524.76 | 55532.38 | 7 |
| Operating Expenses | 7509.01 | 7410.57 | 1 | 28134.50 | 26119.79 | 8 |
| Operating Profits | 8283.67 | 7387.46 | 12 | 31390.26 | 29412.59 | 7 |
| Provisions & Contingencies | 1831.71 | 2481.82 | -26 | 8763.59 | 9707.61 | -10 |
| Profit Before Tax | 6451.96 | 4905.64 | 32 | 22626.67 | 19704.98 | 15 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6451.96 | 4905.64 | 32 | 22626.67 | 19704.98 | 15 |
| Provision for tax | 1449.30 | 1148.41 | 26 | 5600.00 | 5150.65 | 9 |
| PAT | 5002.66 | 3757.23 | 33 | 17026.67 | 14554.33 | 17 |
| EPS*(Rs) | 22.1 | 16.6 | ' | 18.8 | 16.0 | ' |
| Adj BV (Rs) | 93.2 | 70.4 | ' | 93.2 | 70.4 | ' |
| * Annualized on current equity of Rs 1814.13 crore. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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