Canara Bank– Big news for Canara Bank account holders. Canara Bank has taken a big decision on the loan front. The bank has cut the marginal cost of funds based lending rate (MCLR) by 0.10 percent for most tenures, which will make loans cheaper. Canara Bank said that the MCLR for one year tenure will be nine percent as against the current rate of 9.10 percent. The benchmark MCLR is used to price most consumer loans such as car and personal loans.
The bank said that the interest rate for one month, three month and six month period will be in the range of 8.25-8.80 percent. For one day period, MCLR will be 8.20 percent as against 8.30 percent. The bank said that its new marginal MCLR will be effective from May 12. Last month, the Reserve Bank of India (RBI) cut its key interest rate by 0.25 percent to 6 percent. This reduction has been done for the second consecutive time this year.
Canara Bank quarterly results
Canara Bank’s net profit increased by 28 percent to Rs 5,070 crore in the January-March quarter of the last financial year (2024-25). The bank’s profit has increased due to reduction in provision and increase in non-core income. The bank’s profit was Rs 3,951 crore in the same quarter of the financial year 2023-24. The bank said that its net profit in the last full financial year 2024-25 was Rs 17,540 crore, which was Rs 15,279 crore in 2023-24.
The bank said that despite 11 percent loan growth, core net interest income declined by 1.44 percent to Rs 9,442 crore in the quarter, while net interest margin declined by 0.25 percent to 2.80 percent. During the quarter, the bank’s non-interest income grew by 21.74 percent to Rs 6,351 crore. In this, recovery from written off accounts increased by 30 percent to Rs 2,471 crore.