Canara Bank may sell its excess priority sector loans in Q2: MD Raju
During the quarter ended June 2025, the bank earned ₹ 1,248 crore as commission by selling priority sector loans.
Despite sale in the first quarter, the total priority debt stands at 45.63 per cent as against regulatory requirement of 40 per cent of the total loan, Canara Bank MD and CEO K Satyanarayana Raju told PTI.
"We have a cushion under priority sector space. There is demand in the market and we may take advantage of the Priority Sector Lending Certificate (PSLC) sale during the current quarter itself," he said.
Asked about impact of moderation in interest rates, Raju said, main concern for the ongoing financial year would be Net Interest Margin (NIM) and the guidance of 2.75 per cent seems difficult at the current juncture due to 100 basis point rate cut by the RBI so far this year and expectation of another one as inflation has come down below 3 per cent.
Whether the rate cut happens in August or October policy, one has to wait and watch, he said, adding, therefore pressure would be there in the current quarter as well and slight improvement can be witnessed in the third and fourth quarters.
Besides, he said, stake sale in two subsidiaries would provide some comfort during the year.
The bank is aiming for listing of one of its subsidiaries in the current quarter and another in the next quarter, depending on the regulatory approval, he said.
Canara Bank has already initiated the process for listing of asset management joint venture Canara Robeco AMC. The bank is planning to sell its 13 per cent stake in the mutual fund arm through initial public offering (IPO).
Besides, it is also planning a listing of its life insurance joint venture, Canara HSBC Life Insurance Company. Canara Bank has already approved the process of diluting a 14.5 per cent stake in its life insurance venture Canara HSBC Life Insurance Company.
Despite stake dilution, Raju said, the bank would continue to be the majority owner in the both entities and continue to earn substantial fee income by selling their products.
For the first quarter ended June 2025, Canara Bank reported a 22 per cent growth in standalone net profit to ₹ 4,752 crore as against ₹ 3,905 crore in the same quarter of the previous fiscal year.
The total income rose to ₹ 38,063 crore during the latest June quarter from ₹ 34,020 crore in the same quarter of FY25.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
News18
36 minutes ago
- News18
Federal Bank Q1 profit drops 15 pc on core income challenges, rise in NPAs
Mumbai, Aug 2 (PTI) Federal Bank's net profit declined by 15 per cent to Rs 862 crore in the June quarter as a compression in margins impacted core income and an uptick in bad assets led to higher provisions. The bank management said that the second half of the fiscal year must see higher credit growth, and also an uptick in the net interest margins, and blamed the industry-wide issues on the microfinance front for the uptick in non-performing assets. For the reporting quarter, its core net interest income rose by just 2 per cent to Rs 2,337 crore. The other income was up 22 per cent to an all-time high of Rs 1,113 crore on a surge in core fees and also a jump in treasury income. The private sector lender reported a credit growth of 9 per cent, but the narrowing of NIM to 2.94 per cent from the year-ago period's 3.16 per cent impacted the core income growth the most. It's managing director and chief executive K V S Manian said the NIMs will hit the bottom in the September quarter before starting a northward journey into over 3 per cent levels as deposits reprice, and added that its credit growth will accelerate to 12-13 per cent levels with higher growth in the second half. The bank's fresh slippages came at an elevated Rs 658 crore, and were driven by higher contribution from the MFI book and also the seasonal stress in agriculture portfolio. A bank official hinted at a decrease in pain going forward, pointing that MFI slippages were the highest in the month of May, and have seen some decline in June and July. The overall provisions shot up to Rs 437 crore in April-June period, from Rs 173 crore which impacted the profits. The gross non-performing assets ratio inched up to 1.91 per cent from 1.84 per cent in the quarter-ago period. From a loan growth perspective, MFI book grew 4 per cent, commercial segment displayed a 30 per cent jump, credit card was up 16 per cent and corporate was up 4 per cent as better rated companies preferred to raise money from bond markets. Going forward, rhe bank expects gold loan book to rise 25-30 per cent and the busy season to ensure corporate exposure to grow by up to 10 per cent for FY26. The bank's overall capital adequacy ratio stood at 16.03 per cent with the core buffer at 14.69 per cent as on June 30, 2025. PTI AA MR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 02, 2025, 19:00 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
42 minutes ago
- Mint
Odisha Guv asks real estate developers to invest in tier 2 & 3 cities
Bhubaneswar, Aug 2 (PTI) Odisha Governor Hari Babu Kambhampati has called upon real estate developers to invest in tier II and III cities for balanced urbanisation and ensuring sustainable development. He also stressed the need for ethical business practices and customer-centric models to build trust in the sector. 'Odisha stands at a critical inflection point - emerging as the growth engine of Eastern India. Smart cities like Bhubaneswar and Rourkela, the Bhubaneswar-Cuttack-Puri Corridor, and major industrial corridors are unlocking immense potential,' he said. Addressing an Extraordinary General Meeting (EGM) of the Confederation of Real Estate Developers' Associations of India (Credai) on Friday, the governor said, "The real estate developers should focus on tier-2 and 3 cities for balanced urbanisation and invest in affordable housing, green development, and digital infrastructure." The EGM of the association returned to Odisha after a nine-year gap. The event brought together a distinguished panel of national leaders, developers, policymakers, and stakeholders to deliberate on the future of real estate, investment prospects, and sustainable urban development. Credai president Shekhar G Patel highlighted the evolution of Bhubaneswar over the last decade, stating, 'From a twin city, we now see a vision for a dynamic tri-city cluster comprising Bhubaneswar, Cuttack, and Puri. This region is poised to be one of India's top 50 urban centres.' He underscored the contribution of the real estate sector to India's economy. 'Currently contributing 8.4 per cent to India's GDP, it is the second-largest employment generator after agriculture. With RERA streamlining the industry, 95 per cent of the sector is now organised. By 2030, it is projected to become a USD 1 trillion sector, contributing 10 per cent to the GDP.' Credai Bhubaneswar president and MLA Sofia Firdous said that with strategic central initiatives like the Smart City Mission, Bhubaneswar is emerging as the real estate capital of Eastern India.
Indian Express
an hour ago
- Indian Express
NSDL IPO allotment date next week; know how to check status online via PAN
NSDL IPO: Following the close of the subscription of initial public offering (IPO) of National Securities Depository Limited, all eyes of the investors will now be on the finalisation of the allotment of shares. The NSDL IPO allotment will take place next week. The NSDL IPO was opened on July 30 and concluded on August 1. The Rs 4,011-crore initial share sale got bids for 1,44,03,92,004 shares against 3,51,27,002 shares on offer, translating into 41.01 times subscription, as per NSE data, reports PTI. According to the PTI, NSDL IPO received 41 times subscription on the closing day of bidding. Qualified Institutional Buyers (QIBs) garnered 103.97 times subscription. The category for non-institutional investors received 34.98 times subscription and the portion for Retail Individual Investors (RIIs) got subscribed 7.73 times. NSDL has a price band of Rs 760 to Rs 800 per equity share. The NSDL IPO is likely to be finalised on August 4 (Monday). The allotment status will be released online on the official website of the registrar – MUFG Intime India Private Limited. Additionally, the allotment status will also be made available on the official website of the BSE. NSDL IPO Allotment Status Check on MUFG Intime India Private Limited – NSDL IPO Allotment Status Check on BSE Direct Link – NSDL shares are proposed to be listed on BSE. The listing will likely take place on August 6. This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017. (With inputs from PTI)
