Canara Bank has posted strong Q1 results for FY26, with net profit rising 21.7% year-on-year to ₹4,752 crore, compared to ₹3,905 crore in the same quarter last year. This growth was mainly driven by a sharp increase in other income, even as Net Interest Income (NII) slightly declined.
NII, which is the core income from lending activities, fell by 1.7% to ₹9,009 crore from ₹9,166 crore a year ago. However, other income rose by an impressive 32.7%, touching ₹7,060 crore, up from ₹5,318 crore in Q1FY25.
The bank’s Pre-Provision Operating Profit (PPOP) also rose by 12.3% to ₹8,553 crore, showing better operational efficiency. Canara Bank’s credit cost improved to 0.72%, falling 18 basis points.
Asset Quality Sees Improvement
Canara Bank showed clear progress in asset quality. Gross Non-Performing Assets (NPA) reduced to ₹29,518 crore from ₹31,530 crore in the March quarter. Net NPA also came down to ₹6,765 crore from ₹7,353 crore.
The gross NPA ratio improved to 2.69% from 2.94%, while the net NPA ratio dropped to 0.63% from 0.7%. Fresh slippages were down to ₹2,129 crore from ₹2,655 crore last quarter, while recoveries from written-off accounts stood at ₹1,414 crore. The slippage ratio also improved to 0.80%, down by 52 basis points.
Growth in Advances and Deposits
Canara Bank’s global advances rose by 12.42% YoY to ₹10.96 lakh crore, while global deposits grew by 9.92% to ₹14.67 lakh crore. Domestically, advances increased 12.15%, and deposits grew 8.74%.
In the retail segment, retail credit grew by 33.92%, with housing and vehicle loans rising by 13.92% and 22.09% respectively.
As of June 30, 2025, the bank operates 9,861 branches across the country.
At 1:35 PM on July 24, Canara Bank’s share price was up 3.25% at ₹111.30 on the BSE, reflecting investor confidence in the bank’s performance.
