Canara Bank Reports Strong Financial Performance in Q3 2024

Canara Bank, one of the leading public banks in India, has recently announced its financial results for the quarter ending September 2024. The bank has shown a positive performance in this quarter, with its score improving from 5 to 13 in the last 3 months.

According to the financials, Canara Bank has seen a significant growth in its Profit Before Tax (PBT) by 145.3% compared to the average PBT of the previous four quarters. This is a very positive trend for the bank in the near term. The bank has also shown a decrease in its Gross Non-Performing Assets (NPA) in the last five quarters, indicating a reduction in the proportion of stressed loans given by the bank.

Moreover, Canara Bank has recorded its highest Profit After Tax (PAT) at Rs 4,014.53 crore in the last five quarters, with a positive trend in the near term. The bank has also shown a decrease in its Net NPA, which is a positive sign as it indicates a decrease in the proportion of stressed loans given by the bank.

In terms of cash flow, Canara Bank has generated the highest Operating Cash Flow of Rs 14,254.12 crore in the last three years, indicating a strong revenue generation from its business operations. The bank has also recorded its highest Interest Earned at Rs 29,740.07 crore in the last five quarters, with a positive trend in the near term. This shows that the bank has been able to increase its sales and profitability.

Furthermore, Canara Bank has shown a high Credit Deposit Ratio of 73.04% in the last four periods, indicating that the bank has been able to create higher loans against its deposits, resulting in higher revenue generating assets. The bank's Capital Adequacy Ratio (CAR) has also improved in the last five quarters, indicating a strong capital base compared to its risk assets.

However, the bank's Non-Operating Income is 92.20% of its PBT, which is a cause for concern as it shows a high income from non-business activities. This may not be a sustainable business model for the bank.

Overall, Canara Bank has shown a positive financial performance in the quarter ending September 2024, with improvements in key financial indicators. Investors are advised to hold their stocks in the bank, as recommended by MarketsMOJO.