Canara Bank Q1FY27: Net profit at ₹4,856 crore as NII grows 13.4%

The gross NPA ratio fell 112 basis points year-on-year to 1.57 per cent and the net NPA ratio declined 27 basis points to 0.36 per cent in the June quarter

Canara Bank’s standalone net profit rose 2.2 per cent year-on-year to ₹4,855.82 crore in the quarter ended June 30, 2026, while net interest income increased 13.4 per cent to ₹10,215.27 crore.

Net interest income rises 13.4 per cent

Net interest income, calculated as interest earned minus interest expended, rose from ₹9,008.76 crore in the year-ago quarter. Interest earned increased 6.3 per cent to ₹32,957.04 crore, while interest expended grew 3.4 per cent to ₹22,741.77 crore.

 

Total income rose 4.3 per cent to ₹39,684.26 crore. Other income declined 4.7 per cent to ₹6,727.22 crore from ₹7,060.48 crore.

 

Operating expenses increased 10.5 per cent to ₹8,306.63 crore, while operating profit before provisions and contingencies rose 1.0 per cent to ₹8,635.86 crore. Operating margin narrowed by 71 basis points to 21.76 per cent from 22.47 per cent.

 

Provisions decline, tax expense rises

Provisions other than tax and contingencies declined 11.5 per cent to ₹2,080.04 crore. Within this, provisions for non-performing assets fell 24.2 per cent to ₹1,399.33 crore from ₹1,845.26 crore.

 

Profit before tax increased 5.7 per cent to ₹6,555.82 crore. Tax expense rose 17.2 per cent to ₹1,700 crore, resulting in net profit growth trailing the increase in profit before tax.

 

The bank’s net profit margin narrowed by 24 basis points to 12.24 per cent from 12.48 per cent. Annualised return on assets declined by 10 basis points to 1.04 per cent. Basic and diluted earnings per share increased to ₹5.35 from ₹5.24.

Gross NPA ratio falls to 1.57 per cent

The gross non-performing asset ratio declined to 1.57 per cent from 2.69 per cent a year earlier, an improvement of 112 basis points. Sequentially, it improved by 27 basis points from 1.84 per cent at the end of March.

 

The net NPA ratio fell 27 basis points year-on-year to 0.36 per cent from 0.63 per cent. It improved by seven basis points from 0.43 per cent in March.

 

Gross NPAs declined 31.0 per cent to ₹20,354.34 crore, while net NPAs fell 31.2 per cent to ₹4,652.95 crore. The provision coverage ratio was 94.76 per cent at the end of June.

Advances grow 19 per cent

Deposits on the standalone balance sheet grew 11.6 per cent to ₹16.12 trillion from ₹14.44 trillion. Balance-sheet advances increased 19.0 per cent to ₹12.78 trillion from ₹10.74 trillion.

 

The capital adequacy ratio increased by 65 basis points year-on-year to 17.17 per cent. The common equity tier 1 ratio rose by 62 basis points to 12.91 per cent.

 

Retail banking segment revenue increased 20.4 per cent to ₹19,908.64 crore, while its segment result rose 11.3 per cent to ₹5,029.93 crore. Treasury revenue and segment profit declined from the year-ago quarter.