canara financial institution: Canara Bank Q1 website grows 72% on retail mortgage expansion

reported a 72% year-over-year increase in online profits, driven by the expansion of retail mortgages and a surge in various revenue streams.

Net profit above ₹2,022 crore in the quarter ending June 2022, compared to ₹1,177 crore per year in the past.

Total advances rose 14% on the back of a 26% upward push in gold loans. Retail, agriculture and micro and small business lending up 15%. Corporate lending also rose 14% year-on-year on demand for funding from sectors such as infrastructure, metals, cement and effort.

CEO LV Prabhakar said the financial institution is assured of achieving double-digit mortgage lending expansion even in the current fiscal year as every business as personal lending grows.

Higher earnings regardless of financial institution environment except for the extra money for provisions this quarter. Total provisions including those for NPAs increased by 7% to ₹3,690 crore from ₹3,459 crore in the previous year.

Prabhakar said the financial institution has increased its provision protection ratio (PCR) to 84% this year from 70% in March 2020 as a precaution and expects to remain PCR 85% at year-end.

Canara’s online NPAs fell from 3.46% pa to 2.48% pa previously. Recoveries including those from accounts written off at the end of June 2022 amounted to ₹2,597 crore.

Prabhakar said the financial institution expects to run credit rates at 1.40% or less on all of its loans.

Other revenue stream including fees and buying and selling revenue stream up 25% to ₹5,175 crore from ₹4,156 crore.

Canara plans to raise ₹5,500 crore through Tier 1 bonds in this financial year.

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