July 25, 2025

Canara Bank has announced its financial results for the first quarter of the fiscal year 2026, revealing a remarkable year-on-year growth in profit even as some metrics saw a slight downturn. The bank's net interest income (NII) decreased to ₹9,009 crore, a 1.7% decline compared to ₹9,166 crore during the same quarter last year. However, positive news comes with a notable surge in profit after tax (PAT), which rose by 21.7% to reach ₹4,752 crore.> The operating profit for this quarter stood at ₹8,554 crore, marking a robust 12.32% year-on-year increase, signaling healthy operational efficiency despite the marginal decline in NII. Additionally, the bank's global business increased significantly, growing by 10.98% to ₹25,63,984 crore. Global deposits also saw a promising rise of 9.92%, amounting to ₹14,67,655 crore, while gross advances surged by 12.42% to ₹10,96,329 crore. Canara Bank particularly excelled in retail, agriculture, and MSME credit, which expanded impressively by 14.90%. On the asset quality front, Canara Bank showed improved metrics. The gross non-performing asset (NPA) ratio fell to 2.69%, a decrease of 145 basis points year-on-year. The net NPA ratio also improved, landing at 0.63%, being 61 basis points better than the previous year. This positive trend in asset quality is reassuring for investors and stakeholders. Moreover, the bank's provisioning coverage ratio (PCR) was recorded at an impressive 93.17%, up by 395 basis points, further highlighting its capacity to manage potential asset risks effectively. Notable improvements included a credit cost at 0.72%, which improved by 18 basis points, and a slippage ratio that saw significant enhancement, standing at 0.80%, improving by 52 basis points. Examining further advancements, within retail credit, Canara Bank demonstrated outstanding growth, achieving a substantial 33.92% increase. Specifically, housing loans grew by 13.92%, while vehicle loans surged by 22.09%. The bank’s fee-based income also experienced a commendable rise to ₹2,223 crore, translating into a 16.39% increase year-on-year, signaling a diversified income strategy. Earnings per share (EPS) reported a solid increase to ₹21.01, which marks a 21.66% growth year-on-year, reflecting the bank’s strong profit trajectory. Additionally, the return on assets (RoA) stood at 1.14%, which had a slight upward movement of 9 basis points. The Common Equity Tier 1 (CET-1) ratio improved, moving up by 24 basis points to 12.29%, indicating a better capital position. As of June 30, Canara Bank has established a vast network of 9,861 branches across the country, with 3,143 situated in rural areas, 2,903 in semi-urban zones, 1,951 in urban centers, and 1,864 across metro cities, alongside a network of 7,907 ATMs. In addition, the bank operates four branches internationally in key financial hubs such as London, New York, Dubai, and Gift City in Gujarat. Following the positive financial announcement, Canara Bank's shares saw an uptick of 4.3% during trading, reaching ₹112.45 on the Bombay Stock Exchange (BSE), reflecting heightened investor confidence. In conclusion, Canara Bank's Q1 FY26 results demonstrate resilience and growth, particularly in its PAT and operating profit despite a slight dip in NII. The bank’s solid approach towards enhancing asset quality, expanding credit outreach, and optimizing operational efficiency lays a promising foundation for future growth.

Read More at Economictimes →

Tags: Canara bank, Q1 results, Net interest income, Profit after tax, Financial growth,