Canara Bank profit up 2 percent
Canara Bank reported a 2.19% year-on-year increase in standalone net profit to ₹4,856 crore for the first quarter ended June 30, 2026. The bank’s global business expanded 14.37% year-on-year to ₹29,05,066 crore during the quarter, supported by double-digit credit growth and a steady improvement in asset quality.
The lender’s net interest income (NII) grew 13.39% year-on-year to ₹10,215 crore, while total income rose 4.26% to ₹39,684 crore. Global advances jumped 17.97% to ₹12,93,381 crore, driven primarily by retail, agriculture, and MSME (RAM) credit, which surged 21.20%.
Within retail, housing loans grew 17.85% to ₹1,29,036 crore, and vehicle loans rose 26.34%. Total global deposits increased 11.63% year-on-year to ₹16,11,685 crore, with domestic deposits standing at ₹14,73,447 crore.
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Fee income for the quarter improved 5.35% to ₹2,342 crore, while operating profit rose marginally by 0.96% to ₹8,636 crore. The bank’s asset quality indicators strengthened further across key metrics, with gross non-performing assets (GNPA) improving by 27 basis points quarter-on-quarter to 1.57% as of June 2026.
The bank maintained a comfortable capital position with its capital to risk-weighted assets ratio (CRAR) standing at 17.17%, of which common equity tier-1 (CET-1) was 12.91%. Slippages remained low at 0.60%, while credit costs improved by 23 basis points year-on-year to 0.49%.
Management guided for 11-12% growth in global advances and 9-10% growth in global deposits for FY27, while expressing confidence that the bank could exceed its loan growth target based on recent momentum. It expects net interest margin (NIM) to remain in the 2.5-2.6% range, with GNPA at around 1.5% and net NPA at about 0.4% by the end of the fiscal year.
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In terms of numbers, the bank’s global business expansion and credit growth are notable. The bank’s ability to maintain a comfortable capital position is a positive sign.
Overall, Canara Bank’s Q1 results suggest that the bank is on a strong footing, with a comfortable capital position, improving asset quality, and a focus on growth-driven segments.
