Canara Bank shares jumped 3% following the announcement of strong Q4 FY25 results, highlighting significant improvements in profitability and asset quality. As of 1:30 PM, the shares were trading 3.54% higher at Rs 96.99.
The public sector lender reported a 33.2% year-on-year increase in standalone net profit, reaching ₹5,002.66 crore, compared to ₹3,757.23 crore in the same quarter last year. This impressive growth was primarily driven by strong interest income and a notable decline in bad loans.
Although the net interest income saw a marginal dip of 1.4%, the bank’s total income rose by nearly 10%, reflecting a healthy expansion in its revenue base. Operating profit also improved, supported by disciplined cost control and a sharp 26.2% drop in provisions and contingencies, which helped boost the bottom line.
Canara Bank made significant strides in asset quality, with its gross NPA ratio improving to 2.94% from 4.23%, and net NPA ratio falling to 0.70% from 1.27% year-on-year. The reduction in gross and net NPAs indicates better credit risk management and recovery efforts.
For the full fiscal year FY25, the bank posted a net profit of ₹17,026.67 crore, up 17% from the previous year, while total income surged to ₹1,42,207.87 crore. Strong financial performance, improved return on assets, and a stable debt-equity ratio of 0.59 further underline Canara Bank’s improved operational strength.
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