Canara Bank witnessed a significant surge in net profits during the first quarter, jumping by 74.8 per cent YoY to ₹3,535 crore.

PAT improved largely on account of a growing net interest income, which stood at ₹8,666 crore growing by 27.72 per cent while the net interest margin improved by 27 basis points and stood at 3.05 per cent.

The lender’s global business increased by 9.38 per cent YoY to ₹20,80,141 crore, with global deposits increasing by 6.65 per cent YoY to ₹11,92,470 crore, and Global advances (gross) stood at ₹8,87,671 crore, up by 13.27 per cent.

Also read: Canara Bank to sign ₹3,000 crore IT transformation deal

On the domestic front, Canara Bank observed a 4.90 per cent increase in domestic deposits, reaching ₹11,04,506 crore, and domestic advances (gross) grew by 12.69 per cent YoY, reaching ₹8,43,063 crore.

The bank’s asset quality also showed signs of improvement, with the gross non-performing assets (GNPA) ratio declining to 5.15 per cent compared to 5.35 per cent in the previous quarter and 6.98 per cent in the previous year. The net non-performing assets (NNPA) ratio also showed a decline, reaching 1.57 per cent compared to 2.48 per cent last year.

Canara Bank’s Gold Loan portfolio grew by 29.37 per cent with a total amount of ₹1,29,800 crore. The RAM Credit also grew by 12.89 per cent to ₹4,91,475 crore, constituting 55 per cent of the Total Advances.

Also read: Canara Bank’s technology spend this year put at Rs 1,200 crore: MD & CEO, K Satyanarayana Raj

In terms of segment-wise performance, the retail lending portfolio grew by 10.64 per cent YoY to ₹1,42,297 crore, while the housing loan portfolio increased by 13.64 per cent YoY to ₹85,884 crore. Additionally, advances in agriculture showed strong growth of 19.97 per cent YoY, reaching ₹2,22,757 crore.

Regarding capital adequacy, Canara Bank’s stood at 16.24 per cent of which CET1 constituted 11.50 per cent, Tier-I was 13.58 per cent, and Tier-II was 2.66 per cent.