Canara Bank’s Q2 FY25 financial results have bolstered investor confidence, driving the stock higher as the bank posted robust year-on-year (YoY) growth in net profit. The bank’s net profit reached ₹4,020 crore, reflecting an 11.7% increase from ₹3,600 crore in the same quarter last year, though it narrowly missed market expectations of ₹4,048 crore.
Key Financial Highlights:
- Interest Earned: Total interest earned in Q2 stood at ₹29,740.07 crore, up from ₹28,701.35 crore in the previous quarter and ₹26,837.68 crore in Q2 FY24. This includes:
- Interest on Advances/Bills: ₹21,758.09 crore, showing strong growth backed by an increase in advances.
- Income on Investments: ₹6,059.67 crore.
- Other Income: ₹4,981 crore, slightly lower than the ₹5,318.88 crore recorded in the previous quarter.
- Improvement in Asset Quality:
- Gross Non-Performing Assets (GNPA): Decreased to 3.73% from 4.14% sequentially, indicating enhanced asset quality management.
- Net Non-Performing Assets (NNPA): Dropped to 1% from 1.24% in Q1 FY25.
The Q2 results reflect Canara Bank’s strategic focus on profitability and asset quality management, largely aligning with market expectations and signaling a positive growth trajectory. The bank’s YoY improvement in critical financial metrics has reinforced investor optimism, evident in the stock’s surge post-announcement.
As of 12:55 pm the shares of Canara Bank were trading 1.35% higher at ₹102.05
