Dolat Capital: Canara Bank Q1 Review - Weak Capital Position And Provision Buffers

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.Canara Bank reported net interest income and pre-provision operating profit (PPoP) growth of 21% and 32% YoY respectively on an amalgamated basis, driven by muted slippages, higher treasury gains and sharp decline in cost of funds.Moratorium levels stood at 22% in June against 17% in May for standalone Canara Bank. The amalgamation resulted in sharp erosion in net worth with Common Equity Tier (CET1) ratio declining by 330 basis points QoQ to 6.2% for Syndicate Bank and 8.4% for the merged entity as of April 1, 2020.Core equity ratio further declined to 8.15% in Q1 FY21 for the amalgamated entity.We remain concerned over immediate challenges on capital and integration front, apart from asset quality worries. Moreover, weak operating metrics (PPoP/assets at 1.4%) and low provision buffers (0.2% of advances) provided little comfort..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: Canara Bank Q1 Review - Weak Capital Position And Provision Buffers

Dolat Capital: Canara Bank Q1 Review - Weak Capital Position And Provision Buffers

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