Canara Bank Q3 net profit rises 92%; shares surge

Canara Bank on Monday reported a 92% rise in net profit during the third quarter ended December 2022 at 2,881.5 crore as compared to 1,502 crore in the same quarter a year ago. Shares of Canara Bank were trading nearly a per cent higher at 324 apiece on the BSE in afternoon deals.

Meanwhile, the lender’s net interest income or NII, which is the difference between the interest earned and expended, rose about 24% to 8,600 crore as against 6,945 crore year-on-year (YoY). 

On the asset quality front, Canara Bank‘s gross non-performing assets (NPAs) declined at 5.89% as against 6.37% in the September 2022 quarter whereas net NPAs dipped to 1.96% from 2.19% from the previous quarter.

The bank’s provisions and contingencies declined to 3,121 crore from 3,636.8 crore quarter-on-quarter (QoQ) and versus 2,244.8 crore in the year ago period. Its loan growth stood at 18% (YoY). The capital adequacy ratio rose to 16.72% in December quarter as against 16.51% QoQ and 14.80% YoY.

Last week, Canara Bank said that is planning to sell its stake in Russian joint venture Commercial Indo Bank LLC (CIBL) to the other venture partner State Bank of India (SBI) for about 114 crore. CIBL, incorporated in 2003, is a joint venture (JV) in Russia between SBI (60%) and Canara Bank (40%).

Canara Bank has entered into a share sale agreement in relation to sale of equity shares held by it in Moscow-based CIBL with SBI, the bank said in an exchange filing, adding that based on share sale agreement and with the consent of Central Bank of Russia, entire shares held by Canara Bank have been transferred to SBI on November 30, 2022. The Bengaluru-based state-owned bank entered into the agreement for sale on November 11, 2022. 

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