ICRA

Canara Bank's slippages are expected to be around Rs 12,000 crore over the next few quarters, said MD and CEO LV Prabhakar, adding that the amount would be less than Rs 3,000 crore per quarter. Slippages are standard assets becoming non-performing assets (NPAs) owing to the borrowers not paying interest for over 90 days. Overall, the bank reported a good set of numbers with the standalone net profit jumping 72 percent to Rs 2,022 crore in the first quarter owing to healthy core income growth and a decline in bad loans. The bank had posted a net profit of Rs 1,177.47 crore in the year-ago period.

Canara Bank expects slippages of Rs 12,000 crore in next few quarters

Ace investor Rekha Jhunjhunwala trimmed her stake in multibagger PSU bank stock Canara Bank and smallcap counter Raghav Productivity Enhancers during the quarter ended March 31, 2024. Jhunjhunwala cut her stake in Canara Bank by 62 bps to 1.45% in the January-March quarter from 2.07% at the end of the previous quarter. The stock has delivered returns of 115% over the past 12 months and its year-to-date returns are 38%

Rekha Jhunjhunwala trims stake in multibagger Canara Bank & a smallcap

The slippages were primarily from the bank’s large corporate exposure to vulnerable sectors, such as iron and steel, infrastructure and construction and financial sector companies.  Its micro and small enterprises exposure has also experienced elevated levels of stress

The earnings profile of the bank has been impacted over the last few years primarily because of high credit costs, the same has also seen an improvement in since fiscal 2021.

The issuer has made timely interest payments.

Shri K Satyanarayana Raju, MD and CEO

The expectation of strong government support, both on an ongoing basis, and in the event of distress. This is because GoI is a majority shareholder in public sector banks (PSBs) and the guardian of India's financial system.

Canara Bank is one of India's larger PSBs, the merger of eSyndicate Bank has also strengthened the market position of the bank.

9.55%Canara Bank (P) Call : 05 Mar 2025

ISIN:

INE476A08035

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Canara Bank

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Canara Bank expects slippages of Rs 12,000 crore in next few quarters

Rekha Jhunjhunwala trims stake in multibagger Canara Bank & a smallcap

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