State-owned Canara Bank reported a modest increase in profitability for the quarter ended on June 30, 2026, driven by higher net interest income, better asset quality and a healthy loan volume. The lender's net profit increased by 2.2% year-on-year (YoY) to Rs. 4,856 crore in Q1 FY27 compared with Rs. 4,752 crore in the corresponding quarter of the previous financial year.
According to the regulatory filing, Canara Bank's net interest income grew 13.4% to around Rs. 10,216 crore, up from Rs. 9,008 a year earlier. However, the net interest margin stayed flat at 2.52%, indicating that higher business volumes primarily supported the growth in core interest income. In response to the announcement, Canara Bank's share price jumped as high as 2.32% to Rs. 128.56 apiece.
During the June quarter, the bank reported substantial improvement in its asset quality. According to the bank’s investor presentation, the gross non-performing asset ratio declined to 1.57% from 2.69% in Q1 FY26.
The net NPA ratio fell to 0.36%, compared with 0.63% in June 2025 and 0.43% in March 2026. The value of total NPAs shrank by almost 24% YoY to Rs. 1,399 crore from Rs. 1,845 crore.
The provisions dipped slightly by 0.6% to Rs. 3,780 crore, against Rs. 3,802 crore in the year-ago period. The bank's capital adequacy ratio was 17.17%, and Common Equity Tier 1 ratio stood at 12.91%.
Also Read: Karur Vysya Bank Shares Jump Over 10% After Record Q1 Profit. Should Investors Buy, Sell or Hold?
The global business of Canara Bank grew by 14.37% YoY to Rs. 29 lakh crore. Global advances increased 17.97% to Rs. 12.93 lakh crore, while global deposits grew 11.63% to Rs. 16.12 lakh crore.
Domestic gross advances increased by 16.95% to Rs. 12,07,087 crore, reflecting robust credit demand. Its Retail, Agriculture and MSME business saw higher growth with a combined figure of 21.20% to achieve a turnover of Rs. 7,64,675 crore. Domestic deposits increased 10.06% to Rs. 14,73,447 crore.
The total expenses increased by over 5% to Rs. 31,048 crore, while interest paid on deposits increased 2% to Rs. 20,241 crore.
As of 31st June 2026, Canara Bank has 10,131 domestic branches and 11,047 ATMs and cash recyclers. It also has an overseas presence in London, New York, Dubai and GIFT City.