Canara Bank (CANBK) Q3 24/25 earnings summary

Executive summary

• Global business grew 9.3% year-over-year to INR 24.19 lakh crore (₹24,19,171 crore), with advances up 10.45% and deposits up 8.44%.

• Net profit increased 12.25% year-over-year to ₹4,104 crore for Q3 FY25; consolidated net profit for Q3 FY25 was ₹4,214.16 crore.

• Operating profit rose 15.15% year-over-year to ₹7,837 crore, with non-interest income up 35.09%.

• Achieved or surpassed 9 out of 13 FY25 guidance parameters within nine months, including advances growth, asset quality, and profitability metrics.

• Asset quality improved: gross NPA declined to 3.34%, net NPA to 0.89%, and PCR reached 91.26%.

Financial highlights

• Standalone operating profit before provisions for Q3 FY25 was ₹7,836.62 crore; standalone net interest earned for Q3 FY25 was ₹30,311.61 crore.

• Net interest income declined 2.85% year-over-year to ₹9,149 crore, while total income grew 11.69% to ₹36,114 crore.

• Fee-based income increased 23.31% year-over-year; treasury income surged 147.68%.

• EPS (annualized) stood at ₹17.59 (face value ₹2); book value per share at ₹95.26.

• Cost-to-income ratio improved to 47.16%; NIM (global) at 2.83%; ROA at 1.04%; ROE at 20.18%.

Outlook and guidance

• Guidance for March 2025: global business growth 10%, advances 10%, deposits 9%; actuals as of Dec 2024: business growth 9.3%, advances 10.45%, deposits 8.44%.

• NIM guidance 2.90% vs. actual 2.83%; gross NPA guidance 3.5% vs. actual 3.34%; ROE guidance 18% vs. actual 20.18%.

• Focus remains on deposit mobilization, especially retail term deposits and CASA, to support growth and regulatory ratios.

• Expect steady NII growth quarter-on-quarter and continued strong recoveries and upgradations.

• Bank recognized a net gain of ₹1,748.98 crore (net of tax) on investment portfolio reclassification as per new RBI directions.