Canara Bank Q2 earnings: Net profit rises 8.4%; Net NPA ratio declines for 23rd quarter in a row

Canara Bank, the country's leading state-run lender, on Wednesday, October 14, reported a third consecutive rise in its quarterly net profit at the end of September quarter while its asset quality showed an improvement for the 23rd quarter in a row.

Canara Bank said that its net profit in the second quarter of current financial year rose 8.4% annually to ₹5,175 crore from ₹4,774 crore. The jump in profit came on the back of lower provisions for NPAs. The bank made a provision of ₹1,339 crore for NPAs at the end of September quarter compared with ₹1,504 crore it had provided in the year-ago period.

The Bengaluru-based lender's net interest income (NII) or the difference earned on loans and expended on deposits rose 20% to ₹11,004.75 crore from ₹9,141 crore.

Canara Bank's asset quality showed an improvement for the 23rd quarter in a row as its gross non-performing assets as a percentage of total advanced came in at 1.33% at the end of second quarter compared with 1.57% in the previous quarter.

Its net NPA came in at 0.30% as against 0.36% in June quarter.

The bank has been consistently improving its asset quality since March 2021 when its gross NPA ratio was 8.93% and its net NPA ratio was 3.82%, data from Ace Equity showed.

Canara Bank Q2 operational highlights

The bank's global business rose 15.8% to ₹30.72 lakh crore, global advances rose by 13.13% to ₹17 lakh crore and global advances surged 19.5% to ₹13.75 lakh crore.

Retail credit grew by 31.61% with housing loan growth at 17.35% and vehicle loan at 25.50%, Canara Bank said.

Domestic deposit of the bank stood at ₹15.47 lakh crore as of September 2026 with growth of 10.97%.

The bank's provision coverage ratio (PCR) stood to 95.34% as at September 2026 against 94.76% as at June 2026, 93.59% as at September 2025.

At the end of September quarter, Canara Bank had a network of 10,146 branches, out of which 3,215 were rural, 3,040 semi-urban, 1,994 urban and 1,897 metros along with 10,764 ATMs. Bank also had four overseas Branches in London, New York, Dubai and IBU Gift City Branch, Canara Bank said.

Canara Bank shares rose as much as 5.15% to an intraday high of ₹126.40 post its earnings announcement.