Robust Performer

Canara Bank, in its 117th year of operations, recorded robust growth of 122 per cent YoY in net profit to Rs 5,678 crore in FY 2021-22. For the year under review, the bank’s total income grew 2 per cent YoY to Rs 85,907 crore and non-interest income increased 10.5 per cent to Rs 16,497 crore. 

The bank’s cost of deposits decreased 57 bps to 3.9 per cent while its net interest income, the difference between interest paid and interest earned by the bank, grew 9.4 per cent to Rs 26,384 crore as of March 2022. “The gross NPA ratio of the bank declined 142 basis points to 7.5 per cent in 2021-22. The net NPA also declined 17 bps to 2.6 per cent,” said L.V. Prabhakar, MD & CEO, Canara Bank. 

The Provision Coverage Ratio (PCR) of the bank improved 449 bps to 84.17 per cent as on March 31, 2022. PCR is the percentage of funds that a bank sets aside for losses due to bad debts. A high PCR can be beneficial to banks to buffer themselves against losses if the NPAs start increasing faster.

During FY22, Canara Bank raised capital via Basel III compliant additional Tier 1 Bond amounting to Rs 4,000 crore. It also raised capital via Tier 2 Bond amounting to Rs 2,500 crore and equity through QIP of Rs 2,500 crore. The shareholding of government of India in Canara Bank stood at 62.93 per cent as on 31.03.2022.

Business Growth

During FY22, the global business of the bank increased to Rs 18,27,556 crore, up by 8.4 per cent y-o-y with global deposits growing at a pace of 7.47 per cent y-o-y to Rs 10,86,409 crore. The global advances also clocked nearly 10 per cent growth at Rs 7,41,147 crore. 

L.V. Prabhakar, Managing Director & CEO, Canara Bank

Total Assets: Rs 12,57,664 crore

Total Income: Rs 94,257 crore

Operating Profit: Rs 9,145 crore

Net Profit: Rs 5,795 crore