Canara Bank Targets ₹6,000 Crore Recovery in H2 FY25 – State-owned Canara Bank is taking proactive steps to improve its financial stability by targeting a ₹6,000 crore recovery from bad loans in the second half of the fiscal year 2024-25 (H2 FY25). This ambitious target supports the bank’s ongoing focus on asset quality and growth.
Key Recovery Goals for H2 FY25
Canara Bank’s Managing Director and CEO, K. Satyanarayana Raju, stated that the bank aims to recover ₹3,000 crore in both Q3 and Q4 of FY25. The bank recently recovered ₹2,905 crore in the second quarter, including amounts from written-off accounts. Raju highlighted that slippages will be lower due to the bank’s approach to underwriting quality loans.
Canara Robeco AMC IPO Planned for Q4 FY25
In addition to its recovery goals, Canara Bank plans to list its mutual fund subsidiary, Canara Robeco Asset Management Company, in Q4 FY25, with approvals from the finance ministry expected soon. The bank holds a 51% stake in Canara Robeco and intends to offload 13% through the IPO. This would make Canara Robeco the fifth mutual fund to be publicly listed.
Strong Financial Performance in Q2 FY25
The bank’s recent financial report highlights an 11% increase in net profit, reaching ₹4,015 crore in Q2 FY25, compared to ₹3,606 crore in the same period last year. The total income rose to ₹34,721 crore, up from ₹31,472 crore in Q2 FY24. In July, Canara Bank raised ₹10,000 crore through infrastructure bonds, now being deployed across various projects. The bank does not plan to raise additional long-term infra bonds this fiscal year.
Canara Bank’s Financial Highlights at a Glance
| Key Points | Details |
| Recovery Target | ₹6,000 crore from bad loans in H2 FY25, ₹3,000 crore in Q3 and Q4 |
| Q2 Recovery | ₹2,905 crore, including written-off accounts |
| Canara Robeco AMC IPO | Planned for Q4 FY25, with 13% stake to be offloaded |
| Stake in Canara Robeco | 51% ownership by Canara Bank |
| Net Profit Increase | 11% growth to ₹4,015 crore in Q2 FY25 |
| Total Income Growth | Increased to ₹34,721 crore in Q2 FY25 |
| Infrastructure Bonds | Raised ₹10,000 crore in July; no additional fundraising planned this year |
Canara Bank Targets ₹6,000 Crore Recovery in H2 FY25 Summary
- Canara Bank targets ₹6,000 crore recovery in H2 FY25, split between Q3 and Q4.
- Recovered ₹2,905 crore in Q2, including written-off accounts.
- IPO for Canara Robeco AMC expected in Q4 FY25, with 13% stake to be sold.
- Reported 11% increase in Q2 net profit, totaling ₹4,015 crore.
- Total income for Q2 FY25 rose to ₹34,721 crore.
- Raised ₹10,000 crore in infrastructure bonds in July, with no further bonds planned this year.
Also Read Latest Current Affairs 2024
| IPL 2025 Retention List Announced | Ravindra Jadeja Became India’s Fifth-Highest Wicket-Taker |
| Sheikh Naim Qassem Becomes Hezbollah’s New Secretary | Duma Boko Elected as Botswana’s New President |
FAQs on Canara Bank Targets ₹6,000 Crore Recovery in H2 FY25
The Bank aims to recover ₹6,000 crore in bad loans in the second half of FY25.
The IPO for Canara Robeco Asset Management Company is planned for Q4 FY25.
The Bank will offload a 13% stake, retaining 51% ownership in Canara Robeco.
The bank reported a net profit of ₹4,015 crore, an 11% increase from the previous year’s Q2.
Yes, the Bank raised ₹10,000 crore through infrastructure bonds in July.
The bank does not plan to raise additional funds through long-term infrastructure bonds this fiscal year.
The bank’s total income for Q2 FY25 was ₹34,721 crore.
