Canara Bank expects GST reforms to give credit growth a leg-up in H2

Canara Bank expects credit momentum to continue in H2 of FY26, supported by GST rate cuts, robust rural lending, and higher retail demand even as it works to maintain profitability and asset quality

Public sector lender Canara Bank is betting on strong credit growth, driven by GST rate cuts and lending to rural infrastructure in the second half of the financial year, even as it continues to strengthen its asset quality in agriculture loans and maintain profitability momentum, said K Satyanarayana Raju during an interaction with Business Standard.

 

Canara Bank’s net profit grew by nearly 19 per cent year-on-year to ₹4,774 crore during the July–September period.

 

With higher consumer spending and greater traction in the retail, agriculture and MSME (RAM) segments, Canara Bank expects credit growth to surpass its guidance of 11 per