Canara Bank Q3 Results Review - Strong Near Term Net Interest Margin Outlook: Dolat Capital

BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Dolat Capital Report.Canara Bank reported good set of numbers with strong net interest income growth (net interest margin higher by 20 basis points QoQ to 2.9%) and contained credit costs aiding profit after tax growth of 116% YoY, with return on assets of 0.9%. With 88% of loans floating rate (49% marginal cost of funds based lending rate), NIM expansion is expected to continue in the interim. Loan growth was led by corporate advances (up 5% QoQ), including 14% sequential growth in overseas book. Rest of the book (risk assessment management) grew by 2% QoQ. Canara Bank's asset quality trends were healthy with lower than expected slippages at 1.5% stable restructured book at Rs 165 billion or 2% of advances. Slippages from restructured book (excluding of Future retail) have been fairly contained at 12%. We build in higher NIM for FY23E, resulting in earning upgrade of 9%. Asset quality risks are abating and moderation in credit cost will continue to be a key profitability lever, apart from higher near term NIM..Click on the attachment to read the full report:.Axis Bank Q3 Results Review - Opex Contained; Retail Deposits Traction A Monitorable: Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime 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 BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Canara Bank Q3 Results Review - Strong Near Term Net Interest Margin Outlook: Dolat Capital

Canara Bank reported good set of numbers with strong NII growth, contained credit costs aiding PAT growth with RoAs of 0.9%.

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