Canara Bank's net profit for Q1FY23 rose about 71.7% to ₹2,022 crore as compared to ₹1,177.5 crore from the same quarter last year. Its net interest income (NII), the difference between interest earned and expended, rose over 10% to ₹6,784 crore as against ₹6,146 crore in the year-ago quarter.
Its asset quality improved as gross non-performing assets (NPAs) declined to 6.98% from 7.51% in the previous quarter of March 2022 and 8.50% year-on-year (YoY). Meanwhile, its net NPA declined to 2.48% from 2.65% quarter-on-quarter (QoQ) and 3.46% from the year-ago period.
Canara Bank's provisions declined to ₹3,690 crore as against ₹3,708 crore sequentially, however, rose from ₹3,458 crore in the corresponding quarter of the previous fiscal.
Meanwhile, the bank's net interest margin (NIM) stood at 2.78% during Q1FY23 as compared to 2.82% in Q4FY22 and 2.71% in Q1FY22. Meanwhile, fresh slippages declined to ₹3,606 crore from ₹3,619 crore QoQ and ₹4,253 crore YoY.
"The global pandemic Covid-19 has affected the world economy and is recovering from it. The bank's result, operation and asset quality, however, have not been much affected because of the Pandemic. The extent to which any new wave of Covid-19 will impact on the Bank's result will depend on the on-going as well as future development and actions taken to contain its spread or mitigate its severity," the lender said in the earnings release.
