Market Overview
Canara Bank’s stock gained traction in Thursday’s trade after the lender reported a solid set of Q2 FY26 earnings. The stock climbed 3.22% to ₹132.90, supported by upbeat investor sentiment as the bank showcased another quarter of consistent growth in profitability and operational efficiency.
The results reflected a well-balanced performance across income streams, improved asset quality, and a resilient capital position — signaling stability in an otherwise cautious banking environment.
Canara Bank Q2 Performance Highlights
The public sector lender delivered a steady performance for the quarter ended September 2025, with profit after tax (PAT) registering a 19% year-on-year increase.
- Standalone Net Profit: ₹4,773.96 crore, up 18.92% YoY
- Total Income: ₹35,597.73 crore, rising 11.17% YoY
- Profit Before Tax (PBT): ₹6,233.96 crore, up 15.39% YoY
Despite minor pressure on its interest margins, the bank’s overall profitability remained strong, driven by a consistent rise in income and controlled credit costs.
Financial Snapshot
Here’s how Canara Bank’s key financial metrics shaped up in Q2 FY26 compared to the previous year:
- Net Interest Income (NII): ₹9,141 crore, down 1.87% YoY
- Total Income: ₹35,597.73 crore, up 11.17%
- Profit Before Tax (PBT): ₹6,233.96 crore, up 15.39%
- Net Profit: ₹4,773.96 crore, up 18.92% YoY
While NII witnessed a slight dip due to margin compression, higher other income and efficient cost management supported bottom-line growth.
Asset Quality Improvement
Canara Bank continued to strengthen its balance sheet with marked improvement in asset quality ratios.
- Gross NPA (GNPA): Improved to 2.35% as on 30 September 2025, from 3.73% a year ago.
- Net NPA (NNPA): Declined to 0.54%, compared to 0.99% last year.
- Provision Coverage Ratio (PCR): Strengthened to 93.59%, up from 90.89% YoY.
These numbers highlight the bank’s disciplined credit management and sustained focus on recoveries and risk control.
Capital Position & Ratios
Canara Bank maintained a healthy capital buffer in line with regulatory requirements and growth plans.
- CRAR (Capital to Risk-Weighted Assets Ratio): 16.20%
- CET1: 12.21%
- Tier I: 14.28%
- Tier II: 1.92%
This robust capital position provides ample headroom for future expansion and cushions against market volatility.
Business Growth Metrics
The bank’s lending and deposit portfolios continued to expand steadily during the quarter.
- Domestic Deposits: ₹13,94,999 crore as of 30 September 2025, up 12.62% YoY from ₹12,38,713 crore.
- Domestic Advances: ₹10,81,428 crore, up 13.34% YoY from ₹9,54,149 crore.
The consistent growth in both deposits and advances reflects strong customer confidence and the bank’s deep network reach across segments.
Branch Network & Global Presence
As of September 2025, Canara Bank’s wide network underlines its strong domestic and international footprint.
- Total Branches: 9,948
- Rural: 3,165
- Semi-Urban: 2,954
- Urban: 1,957
- Metro: 1,872
- ATMs: 7,405
- Overseas Branches: London, New York, Dubai, and IBU Gift City
This extensive presence continues to strengthen its retail and corporate banking base, allowing the bank to serve diverse geographies effectively.
Summary
Canara Bank’s Q2 FY26 performance underscores a story of steady growth and disciplined management. With a 19% jump in PAT, healthy asset quality, and strong capital ratios, the bank continues to reinforce its financial stability in a dynamic market environment.
The combination of stable deposits, growing advances, and improved NPAs positions Canara Bank on a firm footing as it navigates the evolving banking landscape.
