Canara Bank climbs 5% after Q2 results

Shares of state-owned rose as much as 4.6% to Rs 270.9 in Friday’s intraday trade after the bank reported an 89% year-on-year (YoY) rise in its net profit to Rs 2,525 crore for the second quarter ended September of this fiscal. The bank had posted a net profit of Rs 1,333 crore in the same period of the previous fiscal.

The total income of the bank also grew to Rs 24,932.19 crore during the second quarter of this year against Rs 21,331.49 crore in the same period of 2020-21.

The bank's gross non-performing assets (NPAs) declined to 6.37% of the gross advances as of September 30, 2022, compared with 8.42% at the end of September 2021. The net NPA too fell to 2.19% from 3.22% at the end of the September 2021 quarter.

Total provisions and contingencies increased by 8.23% to Rs 3,636.81 crore in Q2 FY23 from Rs 3,360.23 crore recorded in the same period last year. The Provision Coverage Ratio (PCR) improved to 85.36% in Q2FY23 from 84.51% posted in Q1FY23 and 82.44% reported in Q2FY22.

At 11.05 am, the scrip was trading 3.84% higher at Rs 268.85 over its previous day’s closing price of Rs 258.9 apiece. The stock has surged nearly 13% in the last six months while it has risen about 31% year-to-date.