Canara Bank Q2 NET PROFIT RISES 8.4 PERCENT

Canara Bank reported an 8.4% year-on-year increase in net profit to Rs 5,175 crore for the September quarter on October 14, compared with Rs 4,774 crore in the corresponding period last year. The growth was driven by lower provisions and higher total income. The bank’s net interest income rose 20.4% year-on-year. The increase was supported by strong credit growth, with global advances climbing over 19% year-on-year during the September quarter. Asset quality continued to improve, with gross non-performing assets declining to 1.33% from 1.57% in the previous quarter. Net non-performing assets stood at 0.3%. Provisions declined by more than 24% year-on-year and 14% sequentially to Rs 1,782 crore in the September quarter, providing further support to profitability. Total income increased to Rs 40,931 crore in the corresponding quarter of the previous fiscal year, according to the bank’s regulatory filing. Operating profit also edged higher to Rs 8,758 crore a year earlier. On the expenditure front, the public sector lender’s total expenses rose over 7% year-on-year to Rs 32,173 crore, primarily due to higher interest costs. Interest expended increased nearly 8% to Rs 24,155 crore, while operating expenses climbed more than 5% year-on-year.