InvestorQ : How did you find the comparative quarterly results of BOB and Canara Bank?
Anu Biswas made post

How did you find the comparative quarterly results of BOB and Canara Bank?

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Ria Jain answered.
5 months ago
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It was two sets of positive results announced by Bank of Baroda and by Canara Bank. For example, BOB turned around to net profit of Rs.1,196 crore in the Dec-20 quarter helped on by lower provisioning for doubtful debts. However, total revenues came under pressure down nearly -4.6% on fall in treasury income and corporate banking income.

For BOB, the credit deposit ratio or the C/D ratio improved to 81.5% even as the low-cost current and savings accounts or CASA deposits share improved to 41%. Gross NPAs for BOB fell by 200 bps to 8.43% which is still too high by banking standards. That is something for BOB to reduce further although this is largely provided for.

Canara Bank reported 82% growth in net profit at Rs.739 crore after revenues showed impressive growth of 57.7% at Rs.24,490 crore. Treasury income doubled and even retail and wholesale banking income grew sharply. This was largely on account of the Syndicate Bank merger. Gross NPAs are down but fairly high at 7.48%. Low capital adequacy poses an asset book expansion problem for both banks.

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