Canara Bank delivered impressive Q2 FY27 results with standalone net profit rising 8% year-on-year to ₹5,175 crore, compared to ₹4,774 crore in the same quarter last year. The state-owned lender's total income increased to ₹40,931 crore in the second quarter from ₹38,598 crore in the same period of the previous fiscal year. As per The Hindu BusinessLine, interest income improved to ₹35,159 crore from ₹31,544 crore in the same quarter a year ago. The bank's Net Interest Income witnessed a 20% jump to ₹11,005 crore as against ₹9,141 crore a year ago, crossing the ₹11,000 crore mark. Operating profit also increased to ₹8,758 crore as against ₹8,588 crore in the same quarter a year ago. The strong performance was driven by improved asset quality and reduced provisions, with shares jumping over 5% following the results announcement, trading at ₹126.44 on NSE during intraday trading.
Asset quality metrics demonstrated significant sequential improvement during the quarter. According to The Hindu BusinessLine, gross NPA improved to 1.33% from 2.35% in the corresponding quarter of the previous financial year, while net NPAs improved to 0.30% from 0.54% in the previous quarter. The bank's provisions for bad loans declined to ₹1,339 crore as against ₹1,504 crore in the second quarter of the last financial year. The provision coverage ratio (PCR) stood at 95.34% as of September 30, 2026, compared with 94.76% in June 2026 and 93.59% in September 2025. This improvement in asset quality metrics reflects the bank's enhanced risk management and collection efficiency during the quarter, with net NPA ratio declining for the 23rd consecutive quarter, as confirmed by Upstox Securities.
Canara Bank's global business increased 15.88% year-on-year to ₹30,72,365 crore as of September 30, 2026. The bank's global deposits grew 13.13% to ₹16,97,305 crore, while gross global advances rose 19.46% to ₹13,75,060 crore. Domestically, domestic deposits stood at ₹15,47,979 crore, registering year-on-year growth of 10.97%, while domestic gross advances increased 16.95% to ₹12,64,753 crore. The bank's retail, agriculture and MSME (RAM) credit portfolio grew 21.03% year-on-year to ₹8,12,310 crore. Within retail lending, the retail lending portfolio increased 31.61% to ₹3,30,587 crore, while the housing loan portfolio rose 17.35% to ₹1,34,501 crore.
Canara Bank's overall net worth rose nearly 17% YoY to ₹1.13 lakh crore in the quarter which ended on September 30, 2026, as reported by The Economic Times. The bank's operating profit margin reduced to 21.40% in Q2 FY27 from 22.25% in the year-ago period, while net profit margin increased slightly to 12.64% from 12.37% in the same period last year. The annualised return on assets (RoA) stood at 1.05% in Q2 FY27, as against 1.10% in the same period last year, while debt-equity ratio meanwhile stood at 0.52%, as against 0.55%. The bank's capital adequacy ratio (CRAR) stood at 17.19% as of September 30, 2026, with CET1 at 12.80%, Tier-I capital at 2.25% and Tier-II capital at 2.14%.
Canara Bank's stock emerged as the top performer among PSU banks, with shares surging 5% to an intraday high of ₹126.47 on Wednesday's trading session, as reported by Business Standard. The stock was followed by Central Bank of India, Punjab National Bank, Indian Overseas Bank, Uco Bank and PSB - up 1-3% each. On the flip side, Bank of Baroda remained the top loser, down over 3% following a reported lawsuit filed by NMC Healthcare group. At 1:10 PM on Wednesday, Canara Bank traded with a gain of 3% at ₹124 on the NSE, with trades of around 39.85 million shares recorded during the session. The strong market response reflects investor confidence in the bank's improved asset quality and robust financial performance.
In the April-June 2026 quarter, Canara Bank reported a 2% year-on-year rise in net profit to ₹4,856 crore for Q1 FY27, compared with ₹4,752 crore in the same period last year. The bank's net interest income increased 13% YoY to ₹10,216 crore in the June quarter, up from ₹9,008 crore a year earlier. Additionally, the bank's total non-performing assets declined nearly 24% YoY to ₹1,399 crore from ₹1,845 crore in the corresponding quarter last year, as reported by Live Mint.
