Canara Bank Q3 Review - Credit Metrics Contained: Dolat Capital
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Dolat Capital Report
Canara Bank’s net interest income growth at 15% YoY on the merged basis was slightly below estimates led by Rs 4 billion of interest reversal on pro-forma non-performing asset.
But sharply higher treasury gains versus Q2 FY21 (approximately three times) resulted in better pre-provision operating profit and profit after tax.
Pro forma NPAs at 8.95% versus 8.8% in Q2 FY21 look well contained, with estimated pro-forma slippages at 4.2% for the quarter (annualized) and 2.7% for nine months FY20 against 3.5% for FY20.
Pro forma provision coverage ratio stood at 56% against 58% as of June-end.
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