Canara Bank has received permission from the Reserve Bank of India (RBI) to exercise the call option on its Basel III Additional Tier 1 (AT1) bonds worth Rs 1,500 crore.
The state-run lender said the RBI, through a letter has granted approval for exercising the call option on the Basel III AT1 bonds bearing ISIN INE476A08126, subject to the terms of issue and all applicable laws and regulations. Canara Bank said it is in the process of exercising the call option in accordance with the terms of issuance.
Canara Bank Q1 Results
The development comes after Canara Bank reported a 2.2% year-on-year increase in net profit for the June quarter. The bank posted a net profit of Rs 4,856 crore in first quarter of this fiscal, compared with Rs 4,752 crore in the corresponding quarter last year. Profit growth was supported by healthy growth in net interest income and an improvement in asset quality.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
Net interest income (NII) rose 13% year-on-year to Rs 10,215 crore, compared with Rs 9,009 crore a year earlier. Operating profit, however, increased marginally by 1% to Rs 8,636 crore from Rs 8,554 crore in the year-ago quarter.
ALSO READ: Stock Market Crash: Sensex Falls Over 1,200 Points From Day's High — Three Reasons Why
Canara Bank continued to report an improvement in asset quality during the quarter. Gross non-performing assets (GNPA) declined to 1.57%, compared with 1.84% in the previous quarter. Net NPA also improved to 0.36% from 0.43%.
Provisions stood at Rs 2,080 crore in Q1FY27, compared with Rs 992 crore in the March quarter and Rs 2,352 crore in the year-ago period.
For FY27, Canara Bank expects global advances to grow by 11-12%, while global deposits are projected to increase by 9-10%.
The lender has guided for a global net interest margin (NIM) of 2.5-2.6% for FY27. It expects global gross NPA to remain around 1.5%, while net NPA is expected at around 0.4%.
Canara Bank Share Price Today
Canara Bank shares closed 1.63% lower at Rs 122.37 apiece on Tuesday. The stock has declined 1.85% over the past week and 6.77% over the past month. On a year-to-date basis, the shares are down 20.66%. However, the stock has gained 8.76% over the past year.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
