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State-owned Canara Bank on Thursday reported 19 per cent increase in net profit at Rs 4,774 crore for the second quarter ended September on the back of decline in bad loans. The bank had earned a net profit of Rs 4,015 crore in the year-ago period. Total income increased to Rs 38,598 crore in the second quarter from Rs 34,721 crore in the same period of the previous fiscal, Canara Bank said in a regulatory filing. Interest income improved to Rs 31,544 crore from Rs 29,740 crore in the same quarter a year ago. However, Net Interest Income witnessed moderation in the quarter to Rs 9,141 crore as against Rs 9,315 crore a year ago. Operating profit also increased to Rs 8,588 crore as against Rs 7,654 crore in the same quarter a year ago. In terms of asset quality, gross non-performing assets (NPAs) of the bank moderated to 2.35 per cent of gross advances at the end of September 2025 as against 3.73 per cent by the year-ago period. Similarly, net NPAs or bad loans came down to 0.54