Jobaaj Stories
Canara Bank, a prominent public sector lender, has posted impressive financial results for the fourth quarter of the fiscal year 2023-24. The bank's net profit witnessed a substantial increase of 18.33% year-on-year (Y-o-Y), reaching Rs 3,757 crore for the period of January-March 2024. This notable growth was primarily attributed to a steady rise in interest income coupled with a decline in provisions.
Sequentially, Canara Bank's profit exhibited a commendable rise of 2.76%, totaling Rs 3,757 crore compared to Rs 3,656 crore in the preceding quarter ended December 2023. For the entire fiscal year 2023-24, the bank reported a remarkable 37.25% surge in net profit, amounting to Rs 14,554 crore as against Rs 10,604 crore in the previous fiscal.
In response to the robust financial performance, the board has recommended a dividend payout of 161% for the fiscal year 2023-24, subject to shareholder approval. This marks a significant increase from the 120% dividend paid out in the fiscal year 2022-23.
Despite the positive financial indicators, Canara Bank's stocks experienced a minor setback in the market. The bank's shares closed 3.25% lower at Rs 558.1 per share on the Bombay Stock Exchange (BSE) on Wednesday. The results were announced during market hours on the same day.
As of the end of March 2024, Canara Bank's capital adequacy ratio (CAR) stood strong at 16.28%, with common equity Tier-1 (CET1) at 11.58%. The net interest income (NII) expanded by 11.18% to Rs 9,580 crore in Q4 FY24, compared to Rs 8,617 crore in the corresponding quarter of the previous fiscal year.
Commenting on the results, K Satyanarayana Raju, the managing director and chief executive officer (MD & CEO) of Canara Bank, highlighted that despite the competitive environment for deposit acquisition, the bank managed to improve interest margins. Raju noted that while the cost of deposits increased from 4.38% in Q4 FY23 to 5.5% in Q4 FY24, the yield on advances also improved significantly.
Additionally, Canara Bank witnessed a substantial growth in advances, with a notable 11.34% year-on-year increase to Rs 9.6 trillion at the end of March 2024. The bank's gross non-performing asset (GNPA) ratio declined to 4.23% in Q4 FY24 from 5.35% a year ago, reflecting an improvement in asset quality.
Looking ahead, Canara Bank remains optimistic about its growth prospects for the fiscal year 2024-25. The bank expects a 10% growth in advances and a 9% growth in deposits for the upcoming fiscal year.
Lastly, Canara Bank's high performance in Q4 FY24 reflects its resilience and proactive strategies in navigating through the challenging economic landscape, positioning itself for sustained growth in the future.
