Canara Bank
The Canara Bank Limited is an India-based bank. The Bank’s segments include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations. Life Insurance Operations and Other Banking Operations. Its Retail Banking Operations include Digital Banking and Other Retail Banking. Its products and services include personal banking and corporate banking. Its personal banking includes depository services, mutual funds, technology products, retail loan products, and MSME services.
Key Segments
- Retail Banking Operations
- Life Insurance Operation
- Treasury Operations
- Wholesale Banking Operations
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2024 | March 2023 | March 2022 |
| Sales | 1,10,519 | 85,885 | 70,614 |
| Interest | 72,118 | 52,990 | 43,035 |
| Expenses | 46,146 | 42,772 | 41,235 |
| Financing Profit | -7,745 | -9,877 | -13,657 |
| Financing Margin % | -7% | -12% | -19% |
| Net Profit | 15,401 | 11,345 | 6,158 |
| EPS in Rs | 16.84 | 12.41 | 6.75 |
Synopsis of Financials
- Global business grew by 11.07% year-on-year.
- Global deposits increased by 11.97% year-on-year.
- Global advances grew by 9.86% year-on-year.
- Net profit increased by 10.47% year-on-year, reaching ₹3,905 crore.
- Common equity Tier 1 crossed 12.05%, a 55 basis points year-on-year improvement.
- Return on assets improved from 1% to 1.05%.
- Provision coverage ratio (PCR) improved to 89.22%, a 118 basis points year-on-year improvement.
Final Outlook
Canara Bank (CBK) reported 1QFY25 standalone PAT of INR39.1b (up 10.5% YoY, in line), driven by lower provisions NII grew 5.8% YoY to INR91.7b (5% miss). Margin contracted 17bp QoQ to 2.9% hit by a change in the accounting policy, though management maintained its NIM guidance of 2.95% by exit-FY25.
GNPA/NNPA ratios improved 9bp/3bp QoQ to 4.14%/1.24%. Fresh slippages moderated slightly to INR30.2b from INR30.8b in 4QFY24. The Bank has recorded robust growth of 37.25% y-o-y in net profit to `14,554 crores in FY 2023-24 with operating profit growing by 6.13% y-o-y to `29,413 crores.
However, speaking quarterly Canara Bank reported yet another quarter of sluggish credit growth at 10.7% YoY/1.6% QoQ, whereas deposit growth was at 12% YoY/1.7% QoQ, leading to LDR being sticky at ~71%.
Bank has also further improved the asset quality with a 112 bps y-o-y decline in Gross NPA to 4.23% and a 46 bps y-o-y decline in Net NPA to 1.27% in March 2024. Previous year’s performance has been really great in many aspects, meanwhile current trends suggest that expected growth rates by analysts for FY25-27 will potentially slow down, however there won’t be any major changes which might stop the stock from growing in value.
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