Mumbai: Canara Bank has reported an 8.4% year-on-year (YoY) increase in net profit to ₹5,175 crore for the second quarter of the financial year 2026-27 (Q2 FY27), compared with ₹4,774 crore in the corresponding quarter of the previous financial year.
The public sector lender also recorded growth in total income, interest income and net interest income during the quarter ended September 30, 2026. Its asset quality improved significantly, with the gross non-performing asset (NPA) ratio declining to 1.33% and the net NPA ratio falling to 0.30%.
According to the bank’s regulatory filing, total income increased to ₹40,931 crore in Q2 FY27 from ₹38,598 crore in the year-ago quarter. Interest income rose to ₹35,159 crore from ₹31,544 crore, reflecting continued growth in the bank’s lending business.
Canara Bank Q2 FY27 Results: Key Financial Highlights
Canara Bank reported growth across several key business and financial indicators in the September quarter.
The major highlights include:
- Net Profit: ₹5,175 crore, up 8.40% year-on-year.
- Global Business: ₹30,72,365 crore, up 15.88%.
- Global Deposits: ₹16,97,305 crore, up 13.13%.
- Global Advances: ₹13,75,060 crore, up 19.46%.
- Operating Profit: ₹8,758 crore, up 1.98%.
- Earnings Per Share (EPS): ₹22.06, an increase of 5%.
The figures highlight the bank’s expanding business base and continued profitability during the quarter.
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Canara Bank Net Interest Income Jumps 20%
Canara Bank’s net interest income (NII), which represents the difference between interest earned and interest paid, increased by 20% to ₹11,005 crore in Q2 FY27, compared with ₹9,141 crore in the corresponding quarter last year.
Interest income rose to ₹35,159 crore from ₹31,544 crore, while total income increased to ₹40,931 crore from ₹38,598 crore.
Operating profit stood at ₹8,758 crore, compared with ₹8,588 crore in the year-ago period.
The improvement in net interest income reflects growth in the bank’s core lending-related earnings, while higher total income contributed to its overall financial performance.
Canara Bank Credit Growth: Global Advances Rise 19.46%
Canara Bank recorded strong growth in its lending business, with global advances increasing 19.46% year-on-year to ₹13,75,060 crore.
The bank’s Retail, Agriculture and MSME (RAM) credit portfolio registered growth of 21.03%, reaching ₹8,12,310 crore.
Retail credit recorded even stronger growth, increasing 31.61% to ₹3,30,587 crore.
Within the retail portfolio:
- Housing loans: Grew 17.35%.
- Vehicle loans: Increased 25.50%.
The growth in retail, housing and vehicle loans highlights the bank’s expansion across key lending categories.
Canara Bank Asset Quality Improves, Gross NPA Falls to 1.33%
Canara Bank reported a significant improvement in asset quality during the September 2026 quarter. The gross NPA ratio declined to 1.33% of gross advances, compared with 2.35% at the end of September 2025.
The net NPA ratio also improved to 0.30% from 0.54% a year earlier.
Other asset-quality indicators showed further improvement:
- Gross NPA Ratio: 1.33%, improving by 102 basis points year-on-year, as reported by the bank.
- Net NPA Ratio: 0.30%, improving by 24 basis points.
- Provision Coverage Ratio (PCR): 95.34%, up 175 basis points.
- Credit Cost: 0.47%, improving by 21 basis points.
- Slippage Ratio: 0.58%, improving by 18 basis points.
The bank’s provision for bad loans declined to ₹1,339 crore in Q2 FY27 from ₹1,504 crore in the corresponding quarter of the previous financial year.
The lower NPA ratios and improved provision coverage indicate a strengthening of the bank’s asset-quality position.
Canara Bank Capital Adequacy and Priority Sector Lending
Canara Bank’s Capital to Risk-Weighted Assets Ratio (CRAR) stood at 17.19% at the end of September 2026, while its Common Equity Tier 1 (CET-1) ratio was 12.80%.
The bank also continued to exceed its priority sector lending targets.
Priority sector advances accounted for 44.99% of Adjusted Net Bank Credit (ANBC), while agricultural credit stood at 20.61%.
These figures reflect the bank’s capital position and its continued lending to priority sectors, including agriculture and other segments important to the economy.
Canara Bank Branch Network and ATM Presence
As of September 30, 2026, Canara Bank operated a nationwide network of 10,146 branches and 10,764 ATMs and cash recyclers. The bank also maintained four overseas branches.
Its extensive branch and ATM network supports its retail and corporate banking operations and provides access to banking services across India and selected international locations.
Canara Bank Q2 FY27 Results: Key Takeaways
Canara Bank’s September quarter performance was marked by higher net profit, stronger credit growth and improved asset quality. Net profit increased to ₹5,175 crore, net interest income rose 20% to ₹11,005 crore, and global advances grew 19.46%.
The decline in gross and net NPA ratios, together with a reduction in provisions for bad loans, further strengthened the bank’s reported financial position. The results underline continued growth in its lending operations and improvement in asset-quality indicators during Q2 FY27.
About Canara Bank
Canara Bank is a major Indian public sector bank headquartered in Bengaluru, Karnataka. Established in 1906, it provides a wide range of banking and financial services, including retail banking, corporate lending, agriculture finance, MSME lending, digital banking and international banking services. The bank operates an extensive branch and ATM network across India and serves individuals, businesses and institutional customers.
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