Canara Bank — Q1 FY24
Canara Bank reported a strong Q1 FY24 with net profit surging 74.83% YoY to ₹3,535 crore, driven by 27.72% NII growth and improved asset quality.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
96%Questions answered0Evaded / deflected12Questions audited
Answered
High priority
Gold loan book composition, yields, and branch network for gold lending.
Asked by Mona Khetan, Dolat Capital Market Pvt Ltd
Management provided specific yield and percentage breakdown for agri vs non-agri gold loans.
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Question
I just wanted some more clarity on the gold book, which stands at about INR 1.3 lakh crore today. How much of this would be agri versus non-agri? What would be the yields here?
S. K. Majumdar, CFO
gold loan portfolio, our average yield is around 8.80%. majority is from the agriculture lending. around 85% will be the agriculture gold.
Answered
Medium priority
Number of branches enabled for gold lending now vs 2-3 years ago.
Asked by Mona Khetan, Dolat Capital Market Pvt Ltd
Management gave a clear comparison of branch count for gold lending over time.
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Question
if I have to look at 2 to 3 years back, what would be the network, against the 6,000, which is today gold-enabled for you?
S. K. Majumdar, CFO
Almost 100%, we doubled that network, madam. Earlier it was around the INR 3 thousand, now we increased it to INR 6 thousand.
Answered
High priority
Prudential provisions beyond NPA and standard asset provisions.
Asked by Mona Khetan, Dolat Capital Market Pvt Ltd
Management explained additional provisions and the target PCR level.
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Question
Apart from your PCR provisions and or NPA provisions and general provisions on standard assets, what else do we hold on the prudential side, if anything?
S. K. Majumdar, CFO
we have provided more than INR 800 crore beyond the requirement. we want to, till we reach at par with other banks, we continue to provide these additional amounts every quarter, to see that our PCR crosses 90%.
Answered
High priority
Margin outlook given deposit growth and loan pick-up in busy season.
Asked by Mahrukh Adajania, Nuvama Wealth Management Limited
Management gave a specific NIM guidance and explained CASA initiatives.
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Question
When your loan growth actually picks up in the busy season, and you will have to mobilize much more deposits, how will your margins behave?
S. K. Majumdar, CFO
we are confident that we can manage our NIM at 3% and little above the 3%.
Answered
High priority
Loan growth guidance for the year.
Asked by Mahrukh Adajania, Nuvama Wealth Management Limited
Management provided both a conservative and a target range for loan growth.
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Question
You think you'll be able to maintain 13% loan growth, or it could get higher in the busy season on a year-over-year basis?
S. K. Majumdar, CFO
we have given a guidance that this year we show a growth of reasonable growth of 10.5% in the loan growth. we are expecting our credit growth will be between the 12%-14%.
Answered
Medium priority
PSLC income pattern across quarters.
Asked by Mahrukh Adajania, Nuvama Wealth Management Limited
Management clearly described the quarterly pattern of PSLC income.
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Question
PSLC income usually comes in the first quarter, or it will come through all quarters?
S. K. Majumdar, CFO
in the first quarter, you get a higher margins. Second quarter, something will be there, but not in line with the first quarter. third, fourth, nothing much, very nominal amount.
Partial answer
High priority
Guidance on operating profit growth and full-year provisioning.
Asked by Sridhar Sivaram, Enam Holdings
Management did not confirm the 15-16% operating profit growth and did not give a specific provisioning number.
no specific operating profit growth number givenprovisioning guidance deferred to PCR target
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Question
Is it fair to expect operating profit growth somewhere in the range of 15%-16% for the full year? Should we expect around INR 10,000 crore full year provisioning numbers?
S. K. Majumdar, CFO
We expect that at this moment, a double-digit, we are confident that we can manage the double-digit growth. It will continue till we cross that 90% PCR, sir.
Answered
Medium priority
Dividend policy and expected dividend for the year.
Asked by Sridhar Sivaram, Enam Holdings
Management confirmed the minimum 20% payout policy.
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Question
Last year, you paid 12 rupee dividend. That's roughly about 20%-22% of the profit. Is that a number consistent we should expect even for the coming year?
S. K. Majumdar, CFO
being a public sector bank, we are supposed to announce a minimum 20% of our net profit as our dividend. we continue to give that minimum 20% dividend every year.
Answered
High priority
Repricing of corporate loans and impact on yield.
Asked by Jai Mundra, Batlivala & Karani Securities India Pvt Ltd
Management gave a clear percentage of loans already repriced and explained the remaining.
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Question
how much of that should be pricing the quarter two? of that INR 4 lakh crore loans of corporate loans, how much is yet to reprice in maybe second quarter?
S. K. Majumdar, CFO
80% has been repriced. The remaining 20% will be there, because most of the corporate lending is MCLR linked. which will be repriced whenever it comes for that annual resetting.
Answered
High priority
Offset to declining PSLC income in later quarters to maintain ROA.
Asked by Jai Mundra, Batlivala & Karani Securities India Pvt Ltd
Management listed specific offsets: higher interest income, recoveries, and fee income.
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Question
this quarter of around INR 4,800 crore of pre-tax profit, we have around INR 1,500 crore plus coming from PSL, which should decline significantly. What is the offset?
S. K. Majumdar, CFO
the Q2, since already INR 25,000 crore, absolute numbers, advances have increased. we wish to compensate with the interest income. recoveries will be very high. fee income also, it contributes quarter on quarter.
Answered
Medium priority
Interest on RBI balances and other interest income composition and outlook.
Asked by Saket Kapoor
Management explained the components and gave a forward-looking estimate.
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Question
If you look at your interest on balances with the Reserve Bank, that has been at a highest number of INR 1,109 crore. What should be penciling in going ahead? Also, on the others, there is a figure of INR 474 crore. What is the composition?
P.V. Janardhana Rao, Chief General Manager, Treasury Head
It's a component of interest on call money and deposit with banks, reverse repo, CBLO. I think it should be above INR 1,000 crores, which we expected to garner, maybe a bit more also.
Answered
High priority
GECL book outstanding and NPAs from that book.
Asked by Pritesh Bumb, DAM Capital Advisors Limited
Management provided specific numbers for sanctioned, disbursed, outstanding, and NPA.
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Question
How much is the book and how much were the NPA from that book, if any?
S. K. Majumdar, CFO
GECL, we have sanctioned actually INR 21,000 crore. Out of that, INR 19,000 crore was disbursed. As on date, the balance outstanding was around INR 13,400 odd. Out of this, INR 800 crore has slipped to NPA.