Canara Bank to Offer Loan Against Mutual Funds From April 1, 2025
Canara Bank will start offering loans against mutual funds from April 1, 2025. This new product, already approved by the bank’s internal committee, will be available at the start of the next financial year.
This will be an entirely digital product, delivering end-to-end processing for higher monitoring and operational efficiency. The digital infrastructure for this offering will be ready by the first week of April 2025, making sure smooth execution and better customer experience.
The loan against mutual funds product is part of the bank’s plans to improve its digital services and make things easier for customers. This is likely to cater to a growing demand for quick and efficient credit solutions with better management and delivery through the application of technology.
Canara’s Strong Financial Performance in Q3 FY25
Canara Bank announced a growth of 12.25% in standalone net profit for the 3rd quarter ending 31st December 2024 on January 27. Net profit increased from the previous Rs.3,656.12 crore to Rs.4,104.20 crore compared to corresponding quarter of the previous year.
Total income for the quarter went up by 11.7% to Rs.36,113.77 crore from Rs.32,333.93 crore in the same period last fiscal. Interest income, too, surged, going up to Rs.30,311.61 crore from Rs.28,038.83 crore in the year-ago quarter.
The bank’s Net Interest Income (NII) is 2.85% lower, reported at Rs.9,148.57 crore compared to Rs.9,417 crore in the third quarter of FY24.
Canara Bank is further strengthening its position in the banking sector with strong financial performance and digital innovation. Its new loan product will expand its portfolio even more and provide current needs for customers.
