Canara Bank Q1 net profit up 10% to ₹3,905 crore

State-owned Canara Bank on Thursday posted a 10% rise in its net profit to ₹3,905 crore for the first quarter ended June 30, on account of reduction in bad loans.

The Bengaluru-based lender had earned a net profit of ₹3,535 crore in the year-ago period.

During the quarter, the bank's total income increased to ₹34,020 crore, as against ₹29,823 crore a year ago, Canara Bank said in a regulatory filing.

Interest income grew to ₹28,701 crore during the period under review, from ₹25,004 crore in the corresponding quarter a year ago.

On the asset quality side, the bank's Gross Non-Performing Assets (NPAs) moderated to 4.14% of gross advances as of June 30, 2024, from 5.15% by the end of first quarter of the previous fiscal.

Net NPAs also came down to 1.24% of the advances, from 1.57% at the end of first quarter of last year.

As a result, provision for bad loans declined to ₹2,171 crore, as against ₹2,418 crore earmarked during the same quarter a year ago.

The Capital Adequacy Ratio (CRAR) marginally increased to 16.28%, as compared to 16.24% on June 30, 2023.