Canara Bank on Monday reported a 2.2% year-on-year rise in standalone net profit at Rs 4,856 crore for the quarter ended June 30, 2026, aided by healthy growth in advances and improved asset quality, even as margins remained largely stable. The state-owned lender's net interest income (NII) increased 13.4% year-on-year to Rs 10,215 crore during the first quarter of FY27, while total income rose 4.3% to Rs 39,684 crore. Operating profit stood at Rs 8,636 crore, up nearly 1% from a year earlier.
Canara Bank's global business grew 14.4% year-on-year to Rs 29.05 lakh crore as of June-end, driven by a 17.97% increase in global advances to Rs 12.93 lakh crore and an 11.63% rise in global deposits to Rs 16.12 lakh crore.
Retail lending continued to remain a key growth driver, with retail advances rising 35.9% year-on-year to Rs 3.20 lakh crore. Housing loans grew 17.9% to Rs 1.29 lakh crore, while vehicle loans increased 26.3% to Rs 27,315 crore. Overall RAM (Retail, Agriculture and MSME) credit expanded 21.2% to Rs 7.65 lakh crore.
Net interest margin (NIM) stood at 2.52%, broadly stable compared with 2.55% in the year-ago period. Return on assets was 1.04%, while return on equity came in at 18.31%.
Asset quality improved further during the quarter, with gross non-performing assets (GNPA) declining to 1.57% from 2.69% a year ago, while net NPAs fell to 0.36% from 0.63%. Provision coverage ratio improved to 94.76% from 93.17% a year earlier. Credit cost moderated to 0.49% from 0.72%.
For FY27, Canara Bank has guided for 10-11% growth in global business, 11-12% growth in advances, and 9-10% growth in deposits. It expects gross NPAs to decline to 1.5% and net NPAs to remain around 0.4% by March 2027.
The bank's capital position remained comfortable, with its capital adequacy ratio under Basel III norms improving to 17.17% at the end of June 2026, compared with 16.52% a year ago. Common Equity Tier-I (CET-1) ratio stood at 12.91%.