Bengaluru (Staff Correspondent): Countries top Canara Bank under CMD Raju’s leadership today announced its financial results for the fourth quarter of the financial year 2024-25, showcasing a robust 33% year-on-year (YoY) increase in its standalone net profit, which stood at ₹5,004 crore. This significant growth in profit was achieved despite a marginal 1.4% YoY decrease in the Net Interest Income (NII), which amounted to ₹9,442 crore for the quarter.
Sequentially, the bank demonstrated strong performance with a 22% rise in net profit and a 5.7% growth in operating profit compared to the previous quarter. The total income for Q4 FY25 was reported at ₹37,353 crore, marking a 10% increase compared to the corresponding period last year.
The Board of Directors has recommended a dividend of ₹4 per equity share for the financial year 2024-25, underscoring the bank’s commitment to rewarding its shareholders.
Asset Quality Improves Significantly:
Canara Bank displayed notable improvements in its asset quality during the fourth quarter. The Gross Non-Performing Assets (GNPA) ratio decreased significantly to 2.94% as of March 31, 2025, down from 4.23% in March 2024. Similarly, the Net Non-Performing Assets (NNPA) ratio saw a substantial reduction to 0.70% from 1.27% over the same period.
The Provision Coverage Ratio (PCR) also improved, reaching 92.70% in Q4 FY25, compared to 89.10% in the same quarter of the previous fiscal year. This enhanced PCR indicates a stronger buffer against potential future credit losses.
Growth in Advances and Deposits:
The bank reported healthy growth in its global business. Global gross advances rose by 11.74% YoY to ₹10,73,332 crore, driven by strong growth in Retail, Agriculture, and MSME (RAM) loans. Global deposits also witnessed a substantial increase of 11.01% YoY, reaching ₹14,56,883 crore. Domestic deposits grew by 9.6% YoY to ₹13,31,137 crore.
Key Financial Highlights (Standalone):
* Net Profit: ₹5,004 crore (up 33% YoY)
* Net Interest Income (NII): ₹9,442 crore (down 1.4% YoY)
* Total Income: ₹37,353 crore (up 10% YoY)
* Operating Profit: ₹8,284 crore (up 12.14% YoY)
* Gross NPA: 2.94% (down from 4.23% YoY)
* Net NPA: 0.70% (down from 1.27% YoY)
* Provision Coverage Ratio (PCR): 92.70% (up from 89.10% YoY)
* Dividend: ₹4 per equity share
Market Reaction:
Following the announcement of the strong Q4 results, Canara Bank’s stock witnessed positive movement in the market, reflecting investor confidence in the bank’s performance and future outlook.
Overall Performance:
Despite a slight contraction in NII, Canara Bank’s Q4 FY25 results demonstrate a strong overall performance, marked by significant growth in net profit, substantial improvement in asset quality, and healthy expansion in both advances and deposits. The recommended dividend further underscores the bank’s financial strength and its commitment to shareholder value.
