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Canara Bank shares 3% off day’s high on weak loan growth guidance for FY25
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Canara Bank’s loan growth was weak. The bank’s guidance for loan growth is weaker for FY25 as against its FY24 loan growth.
Private sector lender Canara Bank on Wednesday reported its March 2024 quarter net profit at ₹3,757 crore, up 18% year-on-year (YoY). The figure was in line with CNBC-TV18’s estimate of ₹3,753.6 crore. The same was ₹3,174.7 crore in the same quarter last year.
The bank’s net interest income (NII), the difference between interest earned and interest expended, grew 11% YoY to ₹9,580 crore for the reporting quarter. It was ₹8,616.8 crore in the corresponding quarter of last year.
Canara Bank improved its asset quality over a year ago period as gross non-performing assets (GNPA) ratio reduced to 4.23% in the quarter under review, as against 4.39% in a quarter ago period, and 5.35% in a year ago period.
The lender’s net NPA ratio stood at 1.27% as on March 31, 2024, compared to 1.32% in the last quarter and 1.73% in a year-ago period.
The provision coverage ratio (PCR) stood at 89.10% as of March 2024 as against 89.01% as of December 2023, 87.31% as of March 2023.
Canara Bank’s loan growth was weak. Its guidance for loan growth is weaker for FY25 as against FY24 loan growth.
FY25 guidance:
Deposit growth of 10% (11.3% in FY24)
Advances growth of 10% (11.34% in FY24)
CASA ratio at 33% vs 32.29% in FY24
NIM at 2.9% vs 3.05% in FY24
GNPA ratio at 3.5% vs 4.23% in FY24
NNPA ratio at 1.1% vs 1.27% in FY24
Slippage ratio at 1.3% vs 1.28% in FY24
Credit cost at 1.1% vs 0.96% in FY24
ROA at 1% vs 1.01% in FY24
ROE at 18% vs 22.06% in FY24
The bank has also recommended a dividend of ₹16.10 per equity share of face value of ₹10 each to the shareholders for the year 2023-24.
Record Date for payment of dividend will be Monday, June 17, 2024, the bank said.
This will result in a dividend payout of 161%, the lender said in a regulatory filing.
The dividend will be subject to the approval of shareholders at the ensuing Annual General Meeting of the bank.
Shares of Canara Bank Ltd. were 3% off highs after the bank said on mixed FY25 outlook.
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