Canara Bank — Q3 FY25
Canara Bank delivered a 12.25% YoY PAT growth to ₹4,104 crore in Q3 FY25, driven by strong operating profit growth of 15.15% YoY to ₹7,837 crore and a 23.31% YoY rise in fee inc...
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.
73%Questions answered1Evaded / deflected11Questions auditedConsistentNumbers vs filing
Partial answer
High priority
How to boost CASA and comfortable LDR level?
Asked by Mahrukh Adajania, Senior Equity Analyst, India Financials
CEO gave qualitative steps but no quantitative CASA target or timeline.
no specific CASA target givenqualitative only
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Question
how do you plan to boost your CASA? ... And what is the tolerable level of LDR?
K Satyanarayana Raju, CEO
We have recognized our shortfall of the CASA... we introduced a Canara Crest... CD ratio, we are already at 76.5%... 78% is comfortable for us.
Answered
High priority
Runoff in interest income and fee income components?
Asked by Mahrukh Adajania, Senior Equity Analyst, India Financials
CEO explained the decline in other interest income due to lower overnight lending and one-time NPA interest reversal.
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Question
is there any runoff in interest income because other interest seems to have gone down this quarter? ... can you break it down into components or explain why the miscellaneous fell so much?
K Satyanarayana Raju, CEO
the interest income... we used to get a benefit of excess liquidity... that benefit we are taking it in that is actually other interest income... this time... we are not lending more in that overnight investments... one NPA account... we got a recovery towards the interest on NPA is 320 crores... that 320 one-time is not available this time.
Partial answer
Medium priority
Breakdown of miscellaneous fee income and investment provision?
Asked by Mahrukh Adajania, Senior Equity Analyst, India Financials
CEO refused sequential breakdown, gave only YoY growth; provision explanation was generic.
no sequential breakdown givendeflected to YoY comparison
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Question
the miscellaneous is a very big amount... this quarter, it has fallen QOQ. So can you break it down into components? ... in the provisions, there is an investment provision of INR 4 billion. What is that for?
K Satyanarayana Raju, CEO
miscellaneous income is only debit card charges... you have to compare only year-on-year basis... year-on-year basis, 570 crore became a 747 crores with a 31% growth... regarding NPA... when we transfer our account from banks to NARCL... we are getting a 15% only upfront cash payment... the remaining 85% we get SRs... it is nothing but increasing the provisioning in NPA.
Evasive
Medium priority
Impact of RBI gold loan changes on agri gold loan book?
Asked by Speaker 12
CEO avoided discussing potential regulatory impact, only said no current comment from RBI.
no forward guidancedismissed regulatory concern
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Question
RBI has been talking about some changes in that segment in terms of they have to be collateral free... how will this product evolve?
K Satyanarayana Raju, CEO
our internal audit by the RBI is concluded, and I have not seen any such comment from that RBI regarding our gold loan in the agriculture. So I don't see any problem at this moment.
Answered
Medium priority
Clarification on 320 crore interest benefit mentioned earlier?
Asked by Speaker 12
CEO clearly explained the one-time nature and provided comparative numbers.
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Question
you mentioned 320 crore interest benefit. So can you just repeat?
K Satyanarayana Raju, CEO
Last quarter, our interest on NPA recovery is INR 780 crores... but generally... it's INR 400-INR 450 crores. But last quarter, because one account resolution payment we got INR 320 crores towards the interest... this time also we got around INR 530 crores.
Answered
High priority
Reason for decline in loan yields and slippage breakup?
Asked by Jay Mundra, Equity Research Analyst, Canara Bank
CEO provided specific yield numbers and detailed slippage breakup by segment.
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Question
apart from this interest reversal... was there any other reason that why the loan yields would have declined in this quarter? ... if you can provide the breakup of slippages for this quarter and outstanding standard restructured book?
K Satyanarayana Raju, CEO
our yield... September quarter, our yield is 8.77. Now it is 8.79. There is a two basis point increase in the yield... Total actually the slippages are 800 crore agriculture. 500 crore is retail. Near to the 1,000 crore is MSME. This is 2,300 crore... No corporate account is slipped to NPA... standard restructuring is outstanding at 8,800 crores.
Partial answer
High priority
How to meet FY25 business growth targets given slow deposit growth?
Asked by Ashok Ajmera, Chartered Accountant, Canara Bank
CEO gave qualitative plans but no quantitative deposit growth commitment.
no specific deposit growth target givenrelied on excess SLR
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Question
how do you plan to meet the given targets, sir? Because then there will be a lot of pressure during this quarter...
K Satyanarayana Raju, CEO
our excess SLR position is still there... if my credit growth is picking up... we are growing at 10.45%... we have enough cushion in the RBI window... we are putting entire our energy again on the liabilities for this entire quarter.
Answered
High priority
Recovery outlook and NARCL transfers this quarter?
Asked by Ashok Ajmera, Chartered Accountant, Canara Bank
CEO provided specific recovery numbers and NARCL expectations.
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Question
on the recovery front, how do we see this quarter in total FY25... in this quarter, how many such cases have taken place and how much amount of recovery and SRs?
K Satyanarayana Raju, CEO
the December quarter, we could achieve around 3,600... cash recovery alone, it is INR 3,100 crores... we are expecting even INR 2,000 crores in the technical write-off of accounts... regarding NARCL shifting... we may get some INR 500-600 crores benefit.
Answered
High priority
Impact of proposed RBI LCR guidelines?
Asked by Jugal Kishore, Director, Canara Bank
CEO quantified the impact and mitigation steps with specific numbers.
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Question
if you could just guide on the impacts of proposed RBI guidelines on LCR?
K Satyanarayana Raju, CEO
As on date, our LCR is 123%... if we implement those things as on today, it may impact our LCR from around 11-12 basis points... we introduced... longer tenures... we already garnered more than 8,000 crores in this.
Partial answer
Medium priority
Plan for subsidiary monetization and business overlap?
Asked by Suraj Das, Equity Research Analyst, Canara Bank
CEO gave IPO timeline for two subsidiaries but was vague on Can Fin Homes.
no timeline for Can Fin Homesconditional on price
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Question
in terms of subsidiary monetization, what is your plan? ... in terms of the subsidiary business overlap, what has been your response?
K Satyanarayana Raju, CEO
disinvestment in two subsidiaries... Canara Robeco Mutual Funds and Canara HSBC Insurance Company... we are expecting that both the companies may come for the IPOs in the next financial year... common activity... is only for us Can Fin Homes... we may think of coming out of that.
Evasive
Low priority
Open to strategic buyer for Can Fin Homes?
Asked by Speaker 14
CEO did not answer directly, deferred to future board discussion.
deferred decisionno commitment
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Question
Are we open to a strategic buyer?
K Satyanarayana Raju, CEO
we want to wait for that one or two years when the results are coming out. The real value will come out... then we may think about that, whether it has to be strategic sale or whatever it may be.
Answered
Medium priority
Update on SMA2 accounts (Andhra PSU and state government)?
Asked by Ashley Michael, Managing Director, Canara Bank
CEO gave clear status update on both accounts.
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Question
what is the update on those accounts as of now?
K Satyanarayana Raju, CEO
as on December 31st, these two are appearing in the SMA2. But as on date, these two have come out of even SMA. These are all now not even in the SMA0.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Net profit grew 12.25% YoY to INR 4,104 crore | 12.25% | 12.25% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.