New Delhi: Canara Bank has reported a 2% increase in net profit to ₹4,856 crore for the first quarter of the financial year 2026-27. The public sector lender also announced plans to raise around USD 1.3 billion through Foreign Currency Non-Resident (Bank) deposits (FCNR-B) as part of its overseas fundraising strategy.
The Bengaluru-based bank had recorded a net profit of ₹4,752 crore in the same quarter of the previous financial year.
Canara Bank’s Total Income Rises to ₹39,684 Crore in Q1 FY27
According to the regulatory filing, Canara Bank’s financial performance improved across key areas during the June quarter.
Key financial highlights:
- Net profit: ₹4,856 crore, up 2% year-on-year.
- Total income: Increased to ₹39,684 crore from ₹38,063 crore in Q1 FY26.
- Interest earned: Rose to ₹32,957 crore from ₹31,003 crore.
- Operating profit: Increased to ₹8,636 crore from ₹8,554 crore.
The bank reported steady growth despite changing market conditions.
Net Interest Income Crosses ₹10,000 Crore Mark
Canara Bank Managing Director and CEO Brajesh Kumar Singh said the bank’s Net Interest Income (NII) crossed the ₹10,000 crore mark during the quarter.
The bank’s NII increased:
- Q1 FY27 NII: ₹10,215 crore.
- Q1 FY26 NII: ₹9,009 crore.
This represents a 13% growth in net interest income compared to the same period last year.
Bank Plans USD 1.3 Billion Fundraising Through NRI Deposits
Canara Bank has announced plans to mobilise approximately USD 1.3 billion through FCNR(B) deposits from overseas Indians.
The bank also plans to raise an additional USD 1 billion through overseas foreign currency borrowings.
The fundraising plans include:
- USD 500 million through External Commercial Borrowings (ECBs).
- USD 500 million through Overseas Foreign Currency Borrowings (OFCBs).
The bank has already raised around USD 775 million through the FCNR(B) deposit route.
RBI Measures Support Foreign Currency Deposit Growth
The fundraising strategy comes after the Reserve Bank of India (RBI) removed the interest rate ceiling on fresh FCNR(B) deposits with maturities of three to five years.
The special window for these deposits remains open until September 30.
The move aims to encourage foreign currency inflows from:
- Non-Resident Indians (NRIs).
- Overseas Citizens of India (OCIs).
- Persons of Indian Origin (PIOs).
Banks have also been allowed additional time for overseas foreign currency borrowings until December 31, 2026.
Asset Quality Improves as NPAs Decline
Canara Bank reported a significant improvement in asset quality during the quarter.
The bank’s gross and net non-performing assets (NPAs) declined:
- Gross NPA ratio: Improved to 1.57% from 2.69% a year ago.
- Net NPA ratio: Improved to 0.36% from 0.63%.
The reduction in bad loans helped lower provisions for stressed assets.
Recoveries Rise and Slippages Improve
Managing Director and CEO Brajesh Kumar Singh said the bank achieved total recovery of around ₹2,500 crore during the quarter.
The bank also reported improvement in its slippage ratio:
- Slippage ratio improved to 0.60%.
- Improvement recorded by 20 basis points.
Provision-related performance also strengthened:
- Provision for bad loans: Declined to ₹1,399 crore from ₹1,845 crore.
- Provision Coverage Ratio (PCR): Improved to 94.76% from 93.17%.
Capital Strength and Business Growth Remain Strong
Canara Bank’s capital position improved during the quarter.
Key figures:
- Capital adequacy ratio: Increased to 17.17% from 16.52%.
- Global business: Rose 14% to ₹29,05,066 crore.
- Total deposits: Increased 12% to ₹16,11,685 crore.
- Total advances: Increased 18% to ₹12,93,381 crore.
The bank said there are currently no plans to further dilute its stake in any subsidiaries.
About Canara Bank
Canara Bank is one of India’s largest public sector banks, headquartered in Bengaluru, Karnataka. Established in 1906, the bank provides a wide range of financial services including retail banking, corporate banking, MSME lending, digital banking, and international banking solutions. With an extensive branch network across India and overseas operations, Canara Bank plays a key role in supporting financial inclusion and economic development.
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