Canara Bank Reports 33% Surge in Q4 Net Profit

Canara Bank, one of India’s leading public sector banks, reported a strong financial performance in the fourth quarter of FY2024-25. The bank recorded a significant 33.19% year-on-year increase in net profit, reaching ₹5,004 crore, as compared to ₹3,757.23 crore in the same period last year. The results reflect improved operational efficiency and strong credit growth, although slight pressures were observed in net interest margins.

Why in News?

Canara Bank’s Q4 FY25 financial results were recently released, drawing attention due to the substantial increase in net profit, improved asset quality, and consistent growth in global business, advances, and deposits. This performance comes at a time when public sector banks are under close watch for their asset quality, profitability, and role in driving economic growth.

Key Highlights

• Net Profit: ₹5,004 crore in Q4 FY25, up 33.19% YoY.
• Total Interest Income: ₹31,002.04 crore, a 7.62% YoY increase.
• Operating Profit: ₹8,284 crore, up 12% YoY.
• Net Interest Income (NII): Declined 1.44% YoY to ₹9,442 crore.
• Net Interest Margin (NIM): Dropped 25 basis points YoY to 2.80%.
• Gross NPA: Declined to 2.94% from 4.23% YoY.
• Net NPA: Dropped to 0.70% from 1.27% YoY.

Growth in Business

• Global Business: ₹25.30 lakh crore (11.32% YoY growth).
• Global Deposits: ₹14.56 lakh crore (11.01% YoY growth).
• Gross Global Advances: ₹10.73 lakh crore (11.74% YoY growth).
• Domestic Advances: ₹10.08 lakh crore (11.06% YoY growth).
• Domestic Deposits: ₹13.31 lakh crore (9.56% YoY growth).

Dividend Declaration

• The Board recommended a dividend of ₹4 per equity share for FY25, subject to necessary approvals.

Significance

• Reflects robust financial health and efficient asset management by Canara Bank.
• Indicates a positive trend in public sector banking, aligning with India’s broader economic recovery.
• The fall in Gross and Net NPAs demonstrates improved credit quality and recovery mechanisms.