Canara Bank Q2 Results: Net profit rises 19% to ₹4,774 crore, NII falls 2% YoY; Stock hits 52-week high

Canara Bank, the state-run lender, on Thursday reported a net profit growth of ₹19% year-on-year (YoY) at ₹4,773.96 crore in the second quarter of FY26. The PSU bank had posted a net profit of ₹4,014.53 crore in the same quarter previous fiscal year.

The bank’s Net Interest Income (NII) declined 2% to ₹9,141 crore from ₹9,315 crore, YoY.

Pre-Provisions Operating Profit during the September quarter increased 12.2% to ₹8,588.13 crore from ₹7,653.83 crore.

Canara Bank Asset Quality

Asset quality of Canara Bank improved sequentially. Gross non-performing assets (NPA) in Q2FY26 decreased 8.39% to ₹27,040.27 crore from ₹29,518.43 crore, quarter-on-quarter (QoQ). Gross NPA as a percentage of Gross Advances, or Gross NPA ratio, declined to 2.35% from 2.69%, QoQ.

Net NPA fell 9.63% to ₹6,113.22 crore from ₹6,765.24 crore. Net NPA ratio dropped to 0.54% from 0.63%, QoQ.

Fresh slippages in the September quarter were at ₹2,309 crore as against ₹2,129 crore in the June quarter, while the lender’s slippage ratio stood at 0.76%, an improvement of 24 basis points.

Provisions during the September quarter stood at ₹2,354.17 crore versus ₹2,351.56 crore QoQ and versus ₹2,251.29 crore YoY. Provision Coverage Ratio (PCR) at 93.59% improved by 270 bps.

Canara Bank Balance Sheet

Canara Bank said its global business increased by 13.55% YoY to ₹26,78,963 crore as at September 2025.

The bank’s global deposits increased by 13.40% to ₹15,27,922 crore from ₹13,47,347 crore, YoY. Domestic Deposit of the Bank stood at ₹13,94,999 crore as at September 2025 with growth of 12.62% YoY.

CASA deposits in Q2FY26 increased 10.53% YoY to ₹4,28,115 crore.

Global advances for the quarter increased by 13.74% to ₹11,51,041 crore from ₹10,11,997 crore, YoY. Credit Cost stood at 0.68% improved by 29 bps.

Capital Adequacy Ratio (CAR) stood at 16.20% as at September 2025. Out of which CET1 is 12.21%, Tier-I is 14.28% and Tier-II is 1.92%.

Canara Bank Share Price

Canara Bank share price jumped over 4% to hit a 52-week high after the announcement of Q2 results. The PSU stock rallied as much as 4.34% to a fresh high of ₹134.35 apiece on the BSE. Canara Bank shares have gained 33% so far in 2025.

At 2:15 PM, Canara Bank share price was trading 3.15% higher at ₹132.80 apiece on the BSE.

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