Noida, July 27 (APAC Media): Canara Bank on Monday reported a 2.19% year-on-year rise in net profit at ₹4,856 crore for the first quarter ended June 30, 2026, supported by strong credit growth and improvement in asset quality.
The public sector lender’s operating profit increased 0.96% to ₹8,636 crore during the quarter, while earnings per share grew 2.19%.
The bank’s global business expanded 14.37% year-on-year to ₹29,05,066 crore as of June 2026. Global deposits rose 11.63% to ₹1,611,685 crore, while gross global advances grew 17.97% to ₹1,293,381 crore.
“During the quarter, the bank continued to witness healthy business growth with sustained improvement in asset quality and a stronger balance sheet,” Canara Bank said in its performance update.
Credit Growth Remains Strong
Canara Bank’s domestic advances (gross) increased 16.95% year-on-year to ₹12,07,087 crore, while domestic deposits stood at ₹14,73,447 crore, registering a growth of 10.06%.
The bank’s RAM (Retail, Agriculture and MSME) credit portfolio grew 21.20% to ₹764,675 crore.
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Retail lending recorded significant growth during the quarter, with the retail credit portfolio rising 35.88% year-on-year to ₹3,19,893 crore. Housing loans increased 17.85% to ₹1,29,036 crore, while vehicle loans grew 26.34%.
Fee income stood at ₹2,342 crore, up 5.35% compared with the year-ago period.
Asset Quality Improves
The bank reported further improvement in asset quality, with the gross non-performing assets (GNPA) ratio declining to 1.57% as of June 2026 from 1.84% in March 2026 and 2.69% in June 2025.
The net NPA ratio improved to 0.36% from 0.43% in March 2026 and 0.63% a year earlier.
The Provision Coverage Ratio (PCR) improved to 94.76% from 94.21% in March 2026 and 93.17% in June 2025.
Credit cost declined to 0.49%, improving by 23 basis points, while the slippage ratio improved by 20 basis points to 0.60%.
Capital and Priority Sector Performance
Canara Bank’s capital adequacy ratio (CRAR) stood at 17.17% as of June 2026, with the CET1 ratio at 12.91%, Tier-I capital at 2.09% and Tier-II capital at 2.17%.
The bank exceeded regulatory targets under priority sector lending, with priority sector credit at 45.67% of ANBC against the 40% requirement. Agricultural credit stood at 21.41% against the 18% target.
Credit to small and marginal farmers stood at 13.96% of ANBC, while lending to weaker sections reached 20%. Credit to microenterprises stood at 9.36% and credit to non-corporate farmers at 16.84%.
Network Expansion
As of June 30, 2026, Canara Bank had 10,131 branches, including 3,211 rural, 3,033 semi-urban, 1,994 urban and 1,893 metro branches.
The bank also operated 11,047 ATMs and recyclers and maintained four overseas branches in London, New York, Dubai and the International Banking Unit at GIFT City.
The lender said the quarterly performance reflected continued business momentum, disciplined growth and strengthening financial fundamentals.
–ENDS–
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