Canara Bank's Remarkable Q4 Performance

In a significant financial upturn, Canara Bank reported a net profit of Rs 5,070 crore for the March quarter, showcasing a 28% increase compared to the previous year's Rs 3,951 crore. The bank's board has proposed a dividend of 200%, or Rs 4 per share, reflecting its robust financial health.

Driving Factors Behind the Profit Surge

According to Satyanarayana Raju, MD & CEO of Canara Bank, the profit increase was fueled by growth in other income and significant recoveries. The bank's global business crossed the Rs 25 lakh crore milestone, with deposits and advances growing by 11% and 11.74%, respectively.

Challenges and Strategic Outlook

Despite the positive trajectory, the bank faced a 1.4% dip in net interest income, attributed to pressure on margins following an interest rate cut. However, with a strategic focus on infrastructure and core industries, Canara Bank anticipates a 10-11% loan growth in the current financial year, underscoring its resilience and adaptability in a dynamic economic landscape.