Canara Bank’s Q4 Net Profit rose 18% to ₹3,757 crore.

Canara Bank Q4 has reported an 18.33% increase in its net profit for the fourth quarter, compared to the same period last year, at ₹3,757 crore. He attributed the increase to improved interest income and reduction in provisions. For the full financial year FY24 the bank saw its net profit grow by 37.25% YoY from ₹10,604 crore to ₹14,554 crore.

Managing Director and Chief Executive Officer K. According to Satyanarayan Raju, banks have been able to improve interest margins despite intense competition in collecting deposits.

The bank’s funds-to-assets ratio was measured at 16.28%, while Tier 1 common equity stood at 11.58%. In the fourth quarter of FY24, net interest income (NII) grew by 11.18% to ₹9,580 crore from ₹8,617 crore in the same period a year ago.

Observing notable improvements, the board has recommended a one hundred and sixty one percent yield for FY24, higher than last year’s payout of 120%.

Read More: Canara Bank Q4 Result: Net Profit Increases by 18% to Rs 3,557 cr

Canara Bank, a state-owned bank, has reported 18.33% year-on-year growth in net profit for the Q4 of financial year 2023-24. This could be due to increase in interest income and parallel decrease in provisions.

On a chronological basis, the Bengaluru-based bank experienced a 2.76% increase in profit, reaching Rs 3,656 crore in the third quarter of FY24.

Canara Bank Q4 reported a significant increase in its net profit, which reached Rs 14,554 crore for FY25, up 37.25 per cent from Rs 10,604 crore earned in FY23.

The company’s board has proposed a dividend of 161 per cent for FY24, which has been approved by shareholders. This suggests a significant overall improvement over the 120 per cent dividend issued for FY23.

In a media briefing after the results were announced, K Satyanarayana Raju, MD and CEO shared that the interest margin has increased despite strong competition to get deposits.

While the cost of deposits increased from 4.38% in Q4FY23 to 5.5% in Q4FY24, the return on investment increased from 7.70% in March 2023 to 8.71% in March 2024.