- Net income: 39.1 billion rupees, up 11% year-over-year, close to the estimate of 39.44 billion rupees.
- Operating profit: 76.2 billion rupees, a slight increase of 0.3% year-over-year.
- Gross non-performing assets (NPA): 4.14%, slightly improving from the previous quarter’s 4.23%, but higher than the estimated 4.08%.
- Coverage ratio for non-performing loans: 89.2%, up slightly from the previous quarter’s 89.1%.
- Provisions: 22.8 billion rupees, a decline of 8.1% quarter-over-quarter, below the estimated 24.94 billion rupees.
- Provision for loan losses: 21.7 billion rupees, a decrease of 4.8% quarter-over-quarter.
- Interest income: 287 billion rupees, up 15% year-over-year, just below the estimate of 290.4 billion rupees.
- Interest expense: 195.4 billion rupees, an increase of 20% year-over-year, slightly above the estimate of 194.76 billion rupees.
- Non-interest income: 53.2 billion rupees, surpassing the estimate of 50.06 billion rupees.
- Other income: 53.2 billion rupees, up 10% year-over-year, meeting the estimate of 50.06 billion rupees.
- Shares fell by 2.4%, to 109.72 rupees, with 40.8 million shares traded.
- Analyst recommendations: 12 buys, 1 hold, 5 sells.
Canara Bank on Smartkarma
Analyst coverage of Canara Bank on Smartkarma is positively tilted, with a bullish sentiment expressed by Daniel Tabbush. In his report titled “Canara Bank – Radically Lower NPLs and Sharply Expanding Net Profit”, Tabbush highlights the bank’s significant improvements in non-performing loans (NPLs) and net profit growth. He emphasizes the potential for continued profit expansion supported by lower credit costs and a decrease in Loss Loans. Tabbush notes the impressive rise in Return on Equity (ROE) and Return on Assets (ROA) of Canara Bank, indicating a strong financial performance over recent years.
A look at Canara Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Canara Bank Ltd., a leading banking institution in India, has received impressive Smart Scores across key factors contributing to its long-term outlook. With a perfect score of 5 in Value, Dividend, Growth, and Resilience, the bank demonstrates strong fundamental metrics and a solid financial position. Additionally, achieving a Momentum score of 4 reflects positive market sentiment towards the company. This overall outlook suggests a promising future for Canara Bank, positioning it well to deliver value to its shareholders and stakeholders.
Canara Bank Ltd. stands out in the banking sector with its comprehensive range of services catering to diverse customer needs in India. Specializing in retail, commercial, and personal banking, along with investment management and other financial services, the bank is known for its robust offerings. With strong Smart Scores in key areas like Value, Dividend, Growth, Resilience, and Momentum, Canara Bank showcases resilience and growth potential, making it a standout choice for investors seeking long-term stability and returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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