Canara Bank Q1 results: Net profit jumps 75% to Rs 3,535 crore, beats analysts' estimates; stock hits 52-week high

Canara Bank on Monday reported a standalone net profit of Rs 3,534.8 crore for the quarter ended June 2023, marking a 74.8 per cent increase compared with the corresponding period a year ago and exceeding analysts' estimates by a wide margin. The state-run lender's shares soared to a 52-week high after the announcement. 

Its net interest income (NII) — or the difference between interest earned and interest paid — came in at Rs 8,665.7 crore for the three-month period as against Rs 6,784.7 crore for the year-ago quarter, according to a regulatory filing. 

According to Zee Business research, Canara Bank's quarterly net profit was estimated at Rs 2,920 crore and NII at Rs 8,750 crore.

Asset quality improves 

The state-run lender reported improvement in its asset quality, measured as the percentage of non-performing assets — or bad loans — in total loans.

Canara Bank's gross non-performing assets (NPAs) stood at 5.15 per cent of total loans for the June quarter, as against 5.35 per cent for the previous three months, according to the filing. Its net NPAs came down to 1.57 per cent for the June quarter from 1.73 per cent for the previous three months. 

Canara Bank shares extended intraday gains after the release of the earnings report, rising by as much as Rs 7.8 or 2.3 per cent to Rs 345.8 apiece on BSE to surpass an existing 52-week high touched last week. 

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