For the quarter under review, the bank reported a net profit of Rs 4,774 crore, up 19% from Rs 4,014 crore reported in the same quarter of the previous financial year. It, however, reported a marginal 2% dip in its net interest income Rs 9,141 crore, as against Rs 9,315 crore in the corresponding quarter of the previous year.
The bank reported a 12.20% year-on-year increase in operating profit to Rs 8,588 crore, supported by strong growth across key business segments.
Global business expanded 13.55% year-on-year to Rs 26,78,963 crore, driven by healthy momentum in both global deposits and advances. Global deposits rose 13.40% to Rs 15,27,922 crore, while global advances increased 13.74% year-on-year to Rs 11,51,041 crore, reflecting robust credit demand and sustained business traction.
On the asset quality front, the bank delivered significant improvement, with gross non-performing assets (GNPA) declining by 138 basis points year-on-year to 2.35%. Net NPA also fell by 45 basis points to 0.54%, highlighting the bank’s effective credit risk management and prudent lending practices.
Credit cost improved to 0.68%, down 29 basis points year-on-year, indicating better asset quality and controlled slippages. The Provision Coverage Ratio (PCR) strengthened further to 93.59%, up 270 basis points year-on-year, underlining the bank’s strong provisioning buffers.Return on Assets (ROA) improved to 1.12%, an increase of 7 basis points year-on-year, reflecting enhanced operational efficiency and profitability.The bank’s CASA (Current Account and Savings Account) deposits recorded a 10.53% year-on-year growth to Rs 4,28,115 crore, with a robust 8.18% sequential rise. Within this, current deposits saw a sharp surge of 62.84% year-on-year and 40.48% quarter-on-quarter to Rs 75,920 crore, while savings deposits grew modestly by 3.37% year-on-year to Rs 3,52,195 crore.
Meanwhile, term deposits rose 13.57% year-on-year to Rs 9,66,884 crore in Q2 FY26. Of this, retail term deposits contributed Rs 5,63,683 crore, marking a 9.80% year-on-year increase, underscoring steady growth in the retail franchise and strong customer confidence.
At about 2:20 pm, shares of the lender were trading at Rs 133 per share, up 3.15% from the last close on the NSE. Canara Bank shares have risen 36% in the last 6 months.
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