Canara Bank shares gained as much as 4 percent on October 20 after its September quarter numbers came in ahead of analysts' expectations despite elevated provisions. The stock closed at Rs 259.3, up 4.14 percent on the NSE.
The public sector lender recorded an 89.5 percent year-on-year growth in standalone profit at Rs 2,525 crore for the quarter ended September FY23, aided by lower tax costs and healthy net interest income. Higher other income and operating performance also supported profitability with improved asset quality.
Net interest income (NII) for the quarter grew by 18.5 percent to Rs 7,434 crore compared to the corresponding period last fiscal, with 20 percent YoY growth in global advances and a nearly 10 percent increase in global deposits.
Numbers were ahead of analysts' estimates. According to the average estimates of analysts polled by CNBC-TV18, profit was expected at Rs 1,948.6 crore and net interest income at Rs 7,333.6 crore for the quarter.
Net interest margin (NIM) for the quarter expanded to 2.83 percent, against 2.72 percent in the year-ago period as well as 2.78 percent in the previous quarter. Canara Bank said it has shifted to a new tax regime with a deferred tax reduction of Rs 2,451.6 crore.
The tax cost for the quarter ended September FY23 stood at Rs 743.2 crore, down by 18.4 percent compared to the same period last year.
The bank has improved its asset quality with gross non-performing assets (as a percentage of gross advances) falling 61 bps sequentially to 6.37 percent and net NPA was down by 29 bps QoQ to 2.19 percent for September FY23 quarter.
The public sector lender recorded an 89.5 percent year-on-year growth in standalone profit at Rs 2,525 crore for the quarter ended September FY23, aided by lower tax costs and healthy net interest income. Higher other income and operating performance also supported profitability with improved asset quality.
Net interest income (NII) for the quarter grew by 18.5 percent to Rs 7,434 crore compared to the corresponding period last fiscal, with 20 percent YoY growth in global advances and a nearly 10 percent increase in global deposits.
Numbers were ahead of analysts' estimates. According to the average estimates of analysts polled by CNBC-TV18, profit was expected at Rs 1,948.6 crore and net interest income at Rs 7,333.6 crore for the quarter.
Net interest margin (NIM) for the quarter expanded to 2.83 percent, against 2.72 percent in the year-ago period as well as 2.78 percent in the previous quarter. Canara Bank said it has shifted to a new tax regime with a deferred tax reduction of Rs 2,451.6 crore.
The tax cost for the quarter ended September FY23 stood at Rs 743.2 crore, down by 18.4 percent compared to the same period last year.
The bank has improved its asset quality with gross non-performing assets (as a percentage of gross advances) falling 61 bps sequentially to 6.37 percent and net NPA was down by 29 bps QoQ to 2.19 percent for September FY23 quarter.
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