Canara Bank Q2 profit rises to ₹5,175 crore as NPAs improve

Gross NPAs moderated to 1.33% of gross advances at the end of September 2026 as against 2.35% by the year-ago period.

Mumbai: Shares of public sector lender Canara Bank surged nearly 4 per cent on Wednesday after the bank reported improved financial performance for the second quarter of FY27. Strong growth in net interest income, lower bad loans and reduced provisions supported the bank's September quarter earnings.The PSU banking stock climbed to Rs 125.17 following the announcement, even as it remained under pressure on a year-to-date basis.Net Profit Rises 9 PercentCanara Bank reported a net profit of Rs 5,175 crore for the September 2026 quarter, registering a 9 per cent increase compared with Rs 4,774 crore in the corresponding quarter last year.The improvement came on the back of higher core income and lower provisions, reflecting stronger operating performance during the quarter.Net Interest Income Jumps 20.4 PercentThe bank's net interest income (NII), representing the difference between interest earned and interest paid, increased 20.4 per cent year-on-year.NII reached Rs 11,004 crore during the September quarter, compared with Rs 9,141 crore in the year-ago period. Canara Bank Distributes Vidya Jyoti Scholarships In KolhapurThe double-digit growth in core income highlighted the lender's expanding loan business and interest earnings.Asset Quality Shows ImprovementCanara Bank reported a sequential improvement in asset quality, with its gross non-performing asset (GNPA) ratio declining to 1.33 per cent from 1.57 per cent in June.The net NPA ratio also improved to 0.30 per cent from 0.36 per cent.In absolute terms, gross bad loans declined to Rs 18,298.95 crore from Rs 20,354.34 crore, while net NPAs fell to Rs 4,053.19 crore from Rs 4,652.95 crore.Provisions Decline, Slippages Rise SlightlyProvisions declined to Rs 3,583 crore from Rs 3,780 crore in the preceding quarter, providing additional support to profitability.However, fresh slippages increased marginally to Rs 1,844 crore from Rs 1,781 crore in June.Loan And Deposit Growth Remains StrongThe bank's loan book expanded 19.3 per cent year-on-year to Rs 13.73 lakh crore, while sequential growth stood at 6.2 per cent. Canara Bank Q1 Profit Rises 2% To ₹4,856 Crore, Bad Loans And Provisions DeclineDeposits increased 13.1 per cent annually to Rs 16.97 lakh crore, reflecting continued business expansion.Canara Bank Share Price ReactionFollowing the results, Canara Bank shares gained around 4 per cent to Rs 125.17.Despite the positive earnings reaction, the stock remained approximately 19 per cent lower so far in 2026, highlighting the gap between improving quarterly fundamentals and its broader market performance.Disclaimer: This article is based on reported financial results and market data. Investors should verify information before making investment decisions.

Gross non-performing asset declined to1.33%, from 1.57% in the previous quarter, while Net NPA remained steady at 0.3%, compared to 0.36% in Q1 of the current fiscal.

Gross non-performing asset declined to1.33%, from 1.57% in the previous quarter, while Net NPA remained steady at 0.3%, compared to 0.36% in Q1 of the current fiscal.

Net interest income (NII) rose 20% year-on-year to Rs 11,004 crore from Rs 9,141 crore. The bank's asset quality also improved, with gross non-performing assets (NPAs) declining to 1.33% from 1.57% in the previous quarter.

Mumbai: Canara Bank on Thursday announced its financial results for the second quarter and half-year ended 30 September 2026, reporting an 8.40 per cent increase in net profit to ₹5,175 crore. The bank's global business grew by 15.88 per cent year-on-year.Business PerformanceGlobal business for the period stood at ₹30,72,365 crore. Global deposits increased by 13.13 per cent year-on-year to ₹16,97,305 crore, while global advances (gross) grew by 19.46 per cent year-on-year to ₹13,75,060 crore.Canara Bank To Raise Upto ₹4,500 Crore Via Basel III AT-1 Bonds For Business Growth Domestic GrowthDomestic deposits reached ₹15,47,979 crore, marking a growth of 10.97 per cent year-on-year. Domestic advances (gross) stood at ₹12,64,753 crore, increasing by 16.95 per cent year-on-year.Credit PortfolioRAM credit increased by 21.03 per cent year-on-year to ₹8,12,310 crore. The retail lending portfolio grew by 31.61 per cent year-on-year to ₹3,30,587 crore, with housing loans contributing ₹1,34,501 crore, up 17.35 per cent.Asset Quality ImprovementGross Non-Performing Assets (GNPA) ratio improved to 1.33 per cent as of September 2026, down from 1.57 per cent in June 2026 and 2.35 per cent in September 2025. Net Non-Performing Assets (NNPA) ratio improved to 0.30 per cent.Provision Coverage RatioThe Provision Coverage Ratio (PCR) stood at 95.34 per cent as of September 2026, an improvement from 94.76 per cent in June 2026 and 93.59 per cent in September 2025.Mumbai: NCLT Rejects Canara Bank’s ₹742 Crore Insolvency Plea Against NSD Nirman Over Limitation Capital AdequacyThe Capital to Risk-weighted Assets Ratio (CRAR) was 17.19 per cent as of September 2026. Within this, Common Equity Tier 1 (CET1) was 12.80 per cent, Tier-I was 2.25 per cent, and Tier-II was 2.14 per cent.Priority Sector LendingCanara Bank achieved 44.99 per cent in priority sector targets, surpassing the norm of 40 per cent. Agricultural credit stood at 20.61 per cent of ANBC, against the 18 per cent norm.Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.