Canara Bank Q1 Review - Receding Corporate Risks, Improving Core: Dolat Capital
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Dolat Capital Report
Canara Bank reported a higher than expected operating profits led by strong other income, which benefitted from high priority sector lending certificate income and healthy recovery from written off assets, apart from elevated treasury gains.
Canara Bank's net interest margin were higher q-o-q at 2.7% and have benefitted from sharp decline in cost of fund to 3.7%, apart from lower interest reversals.
Slippages at 2.8% were better than expected.
Gross non performing asset decline of 40 basis points q-o-q to 8.5% was led by strong recoveries and upgrades, which were largely from non-corporate segment.
56% of slippages during the quarter came from micro, small and medium enterprise segment.
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