Canara Bank\u2019s gross profit for Q1FY2019 grew by a healthy 18.65% y.o.y to Rs. 2933 cr backed\u00a0by a robust net interest income (NII) growth at 43.13% y.o.y. Consequently, its net profit grew\u00a0by 11.51% y.o.y to Rs. 281 cr.<\/p>\n
The impressive performance in NII growth is primarily due to\u00a0the 15.12% yoy growth in domestic credit backed by a whopping 36.22% growth in retail credit\u00a0which in turn has contributed to the 14.87% yoy increase in interest income from advances.<\/p>\n
\nWhile the total business of the bank registered a healthy 10.96% growth to reach Rs. 9.2 lakh\u00a0cr, its domestic business grew by a higher 13.06% yoy to reach Rs. 8.63 lakh cr. The global\u00a0deposits of the bank improved by 9.75% while its domestic deposits improved by a higher\u00a011.62%. The CASA deposits posted a 9.1% yoy growth with the Savings bank deposits\u00a0registering, a higher 11.75% yoy growth. The CASA ratio stood at 32.43%. The CD ratio of the\u00a0bank improved by 188bps to 72.43% from the 70.55% level a year ago.<\/p>\n
\nOn the asset quality side, signs of recovery are visible with recovery and upgradations, backed\u00a0by a strong 56% qoq improvement in cash recovery (Rs. 3537 cr) resulting in both gross and\u00a0net NPAs improving sequentially to 11.05% and 6.91% respectively. The stressed assets ratio is\u00a0sequentially down to 12.1% from 12.7% highlighting the consistent efforts of the bank in\u00a0improving the asset quality. Further the provision coverage ratio has improved to 60.69% from
\n54.52%.<\/p>\n
The comfortable CRAR of 13%, up from 12.61% a year ago, augur well for the higher growth\u00a0trajectory, which the bank has entered into, aimed at improving its market share in business.<\/p>\n
The capital optimization measures taken by the bank has led to decrease in risk-weight\u00a0density to 88.6% as at June 2018 from 96.6% as at June 2017.<\/p>\n
The bank is adequately\u00a0capitalized with CRAR at 13.00% from 12.61% as on June 2017 for being supportive for further
\ncredit growth. CET1 is at 9.35% and Tier 1 capital at 10.12% is in comfortable range.<\/p>\n
On a road to sustained growth, the bank is keen on strengthening the balance sheet through\u00a0augmenting retail business, digitalization and transformation. The robust business growth,\u00a0both globally (10.96%) and domestically (13.06%), stands as a testimony with improved CD\u00a0ratio 72.43 (global) and 72.37 (domestic).<\/p>\n
The improvement in the share of retail loans in the\u00a0total credit has de-risked the balance sheet. Further, the bank has calibrated its growth in\u00a0corporate sector by limiting its exposure to sectors under stress and incrementally growing\u00a0only in those corporate, which are highly rated.<\/p>\n","protected":false},"excerpt":{"rendered":"
Canara Bank\u2019s gross profit for Q1FY2019 grew by a healthy 18.65% y.o.y to Rs. 2933 cr backed\u00a0by a robust net interest income (NII) growth at 43.13% y.o.y. Consequently, its net profit grew\u00a0by 11.51% y.o.y to Rs. 281 cr. The impressive performance in NII growth is primarily due to\u00a0the 15.12% yoy growth in domestic credit backed […]<\/p>\n","protected":false},"author":3,"featured_media":1229,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[31],"tags":[577,578,583,582],"class_list":["post-1226","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-casa-deposits","tag-crar","tag-de-risked-the-balance-sheet","tag-nii-growth"],"aioseo_notices":[],"yoast_head":"\n