Canara Bank Q3 Results Review - Lower Provisions Aid Earnings; Asset Quality Improves: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Canara Bank reported Q3 FY24 standalone profit after tax at Rs 36.6 billion (up 27% YoY, in line), driven by lower provisions. Net interest income grew 9.5% YoY (in line), while margins improved 3 bp QoQ to 3.03%. Other income grew 8% YoY to Rs 43 billion (down 7% QoQ, 6% miss). Opex grew 23% YoY to Rs 69.1 billion (17% QoQ growth, 8% beat). Pre-provision operating profit, thus, declined 2% YoY (7% miss). The cost/income ratio rose to 50.4% due to wage revisions at 17%. On the business front, the loan book grew 13% YoY (3.2% QoQ), driven by healthy traction in retail and corporate loans. Canara Bank's deposits grew 8.5% YoY (2.5% QoQ) to Rs 12.6 trillion, led by 14% YoY growth in term deposits. The current account and savings account ratio, thus, moderated 50 bp QoQ to 31.7%.Asset quality ratios improved significantly, with credit costs falling below 1%. Fresh slippages stood at Rs 26.97 billion versus Rs 29.87 billion in Q2 FY24. Return on asset/return on equity stood at 1.01%/21.95%. We broadly maintain our earnings per share estimates and expect Canara Bank to deliver FY25E RoA/RoE of 1.1%/19.5%. Reiterate 'Buy' with a target price of Rs 570..Click on the attachment to read the full report:.Canara Bank Q3 Results: Profit Rises 27% On Higher Income.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Canara Bank Q3 Results Review - Lower Provisions Aid Earnings; Asset Quality Improves: Motilal Oswal

RoA to expand further

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Canara Bank Q3 Results Review - Lower Provisions Aid Earnings; Asset Quality Improves: Motilal Oswal

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