Canara Bank's Profit Dips Amid Strategic Focus on RAM Model
Canara Bank's consolidated net profit fell by 9.88% to Rs 4,574.23 crore in Q4, primarily due to lower non-interest income. Despite this, the bank's net interest margin improved slightly, with a strategic focus on retail, agri, and MSME lending. The bank also expects substantial loan demand under the ECLGS 5.0 scheme.
State-run Canara Bank has reported a 9.88% decline in its consolidated net profit to Rs 4,574.23 crore for the fourth quarter, with decreased non-interest income cited as the primary cause.
In stark contrast, net interest income witnessed a modest increase of 3.88%, driven by the bank's strategic pivot towards high-spread segments like retail, agri, and MSME lending. Consequently, their net interest margin recorded a marginal improvement.
The executive director, Hardeep Singh Ahluwalia, confirmed that under the ECLGS 5.0 scheme, there's an anticipated loan demand ranging between Rs 18,000-20,000 crore. Such expectations arise even amid geopolitical tensions impacting operations, exemplified by their strategic staff repositioning from Dubai.
(With inputs from agencies.)
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