Dolat Capital: Canara Bank Q2 Review - Fragile Core Equity, Low Provisioning Buffers 
A pedestrian walks past State Bank of India and Canara Bank automated teller machines (ATM) in Mumbai, India. (Photographer: Adeel Halim/Bloomberg)

Dolat Capital: Canara Bank Q2 Review - Fragile Core Equity, Low Provisioning Buffers 

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

Canara Bank reported better than expected net interest income and pre-provision operating profit growth of 29% and 32% YoY respectively on an amalgamated basis, driven by improved spreads, healthy growth in fee income, elevated treasury gains, and high recoveries from written off accounts.

Collection efficiency stood at 92-95% for the month of September, including past arrears.

Management estimates approximately Rs 130 billion or 2% of loans to be restructured, having received requests for Rs 6 billion so far. 80% of these are from corporate segment.

Click on the attachment to read the full report:

Dolat Capital Canara Bank Q2FY21 Result Update.pdf

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