Canara Bank Q1FY26 Results: Net Profit Jumps 21.69% To Rs 4,752 Cr, Asset Quality Improves

Canara Bank released its financial results for the first quarter and three months ending June 30, 2025, on Thursday, July 24. Despite a sequential dip from Q4, the bank generated a net profit of Rs 4,752 crore, gaining 21.69% YoY. At Rs 8,554 crore, the bank's operating profit increased 12.32% YoY. The total income climbed by 11.88% YoY to Rs 38,063 crore, with net interest income (NII) coming in at Rs 9,009 crore.

At Rs 7,060 crore, the bank's non-interest income increased by 32.73% YoY. According to Canara Bank, its provisions were Rs 3,802 crore, with a 15.02% YoY reduction in NPA provisioning. With return on assets at 1.14% and return on net worth at 21.05%, key profitability ratios stayed robust. With the cost-to-income ratio rising to 46.77%, the bank was able to retain cost efficiency.

In the first quarter of FY2025-26, Canara Bank reported robust business growth, with global gross business of more than Rs 25.63 lakh crore, or a 10.98% YoY rise. While global deposits rose 9.92% YoY to Rs 14.68 lakh crore, global gross advances climbed 12.42% YoY to Rs 10.96 lakh crore. At 74.70%, the credit-deposit ratio improved. Domestically, advances were Rs 10.32 lakh crore, up 12.15% YoY.

With net NPA dropping to 0.63% (down 61 bps YoY) and gross NPA dropping to 2.69% (down 145 bps YoY), asset quality has shown a noticeable improvement. An adequately fortified balance sheet was indicated by the provision coverage ratio (PCR), which improved to 93.17%.

Canara Bank has performed well in the first quarter of FY2025-26, as evidenced by the fact that a number of key metrics have already approached or surpassed the FY2025-26 guidance. As of June 2025, the bank has already surpassed the full-year guidance of 10.5% in terms of business growth, with 10.98% YoY growth in global business. Global deposits climbed 9.92%, in line with the 9-10% guidance, while global advances surged 12.42%, exceeding the 10-11% forecast. The domestic CASA ratio was 29.56%, which was merely less than the March 2026 guidance of 32%.

Regarding profitability metrics, Canara Bank's return on equity (RoE) was 21.05%, which was already much better than the guidance of 18.5%; earnings per share (EPS) was Rs 21.01, which was higher than the forecast of Rs 19; and return on assets (RoA) was 1.14%, which was higher than the guidance for March 2026 of 1.05%.

At 2.55%, the Net Interest Margin (NIM) was marginally below the 2.75-2.80% target. In an announcement, Canara Bank reported that its Gross Non-Performing Asset (NPA) had improved to 2.69%, approaching the 2.50% guidance for March 2026; its Net NPA was at 0.63%, approaching the 0.60% target; its Provision Coverage Ratio (PCR) had improved to 93.17%, surpassing the 93% target; and its slippage ratio was at 0.80%, below the 0.90% guidance.

As of June 30, 2025, the bank has 9861 branches, including 7907 ATMs, 3143 rural, 2903 semi-urban, 1951 urban, and 1864 metro. In addition, the bank has four overseas branches in IBU Gift City, Dubai, New York, and London.