NE BUSINESS BUREAU
CHENNAI, MAY 12
Public sector lender Canara Bank reported a 33 per cent year-on-year (Y-o-Y) growth in net profit at Rs 5,004 crore in the fourth quarter of 2024–25 (Q4 FY25), aided by other income amid pressure on net interest margin.
For the full financial year, Canara Bank posted a net profit of Rs 17,027 crore in FY25, registering a 16.99 per cent Y-o-Y growth.
- The total interest income rises to Rs 31,002.04 crore, up 7.62 per cent YoY against Rs 28,807.35 crore
- Net NPAs declines to 0.70 per cent from 1.27 per cent in March 2024
- Staff drive brings in Rs 16,700 cr deposits in 10 weeks
The bank’s other income—comprising fees, commission, and treasury earnings—expanded by 22 per cent Y-o-Y to Rs 6,351 crore. Its fee-based income and treasury income rose by 20 per cent and 15.03 per cent, respectively, Y-o-Y. However, treasury income declined 18.84 per cent sequentially. The board recommended a dividend of Rs 4 per share for FY25.
Net interest income (NII), a key revenue source, for the reporting quarter fell marginally by 1.44 per cent Y-o-Y to Rs 9,442 crore. The lender’s net interest margin (NIM)—the difference between interest received and interest paid—from domestic operations in Q4 FY25 fell to 2.73 per cent, down from 3.07 per cent in the same period the previous year.
The cost-income ratio improved to 47.55 per cent (excluding wage revisions and one-time items) as on 31 March 2025, from 50.08 per cent a year ago.
Canara Bank’s global advances increased by 11.74 per cent Y-o-Y. It reported credit growth in domestic advances of 11.06 per cent Y-o-Y at Rs 10 trillion as of 31 March 2025. Retail advances and corporate loans registered 13.23 per cent and 9.83 per cent Y-o-Y growth, respectively.
The bank’s global deposits increased by 11.01 per cent to Rs 14.06 trillion. Domestic deposits expanded by 9.56 per cent Y-o-Y to Rs 13.31 trillion. The share of low-cost deposits—Current Account and Savings Account (CASA)—stood at 31.17 per cent in March 2025.
The asset quality profile improved with gross non-performing assets (NPAs) declining to 2.94 per cent as of 31 March 2025, from 4.23 per cent a year ago. Net NPAs declined to 0.70 per cent from 1.27 per cent in March 2024. The provision coverage ratio (PCR), including write-offs, stood at 92.70 per cent in March 2025.
Its capital adequacy ratio stood at 16.33 per cent, with the Common Equity Tier I (CET-1) at 12.03 per cent.
Staff drive brings in Rs 16,700 cr deposits in 10 weeks
The bank has collected Rs 16,700 cr in deposits within just ten weeks by involving all 82,000 of its employees in a unique campaign.
Launched on January 26, 2024, amid a system-wide slowdown in deposit growth, the initiative saw the bank’s top management urging each staff member to mobilise Rs 10 lac in deposits through their personal and professional networks.
“We had given a call to each of the 82,000 staff members to canvas within their circles. Each one should bring in Rs 10 lac as a deposit in CASA or retail term deposits,” said K Satyanarayana Raju, Managing Director and CEO of Canara Bank.
