BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Canara Bank reported in-line operating metrics with net interest income/pre-provision operating profit growth of 25%/19% YoY. Higher-than-expected provisions led by provisions against Future Group and high write-offs/slippages resulted in profit after tax miss.
Asset quality trends were average during Q4 FY22 with sequentially higher slippages at 2.7% and 4-4.5% delinquencies from restructured book.
Management highlighted that there were no large corporate slippages (one-two large accounts with Rs 1-1.5 billion automatic transfer service). Restructured book was stable at 2.6%.
Canara Bank provided 60% against Future Group exposure worth Rs 12 billion.
Realisation from National Company Law Tribunal accounts is expected at 35-40% and management has guided for end-FY23 gross non-performing assets of 6%.
Slippages from the restructured/Emergency Credit Line Guarantee Scheme book remain a monitorable.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
