Mumbai: Bengaluru-based state-owned lender Canara Bank has reported a 21.7% rise in profits to Rs.4,752 crore in Q1FY26 from Rs.3,905 crore from the corresponding quarter a year ago. The company has seen a marked improvement in its operations, where the bank’s operating profit has also increased 12.32% to Rs.8,554 crore from the same period last year.
Before the bank declared its results to the bourses, analysts had predicted the bank’s net profit to grow by 15-17% YoY, supported by the bank’s stable loan growth and asset quality. Though the bank’s Net Interest Income (NII) fell 1.7% from Rs.9,166 crore to Rs.9,009 crore YoY, the bank reported a massive 32% rise in other income from Rs.5,318 crore to Rs.7,060 crore from the same quarter last year.
Canara Bank’s gross non-performing assets (GNPA) have reduced to 2.69% from 2.94% in the previous quarter. Its net non-performing assets (NPA) have declined to 0.63 per cent from 0.70 per cent in the previous quarter, signalling improvements in its loan book quality.
After the merger of the erstwhile Syndicate Bank with itself, Canara Bank has become the fourth largest public sector bank in India with a 6.2% market share. The bank’s stock has rallied 11.6% this year due to a significant drop in provisions and a successive rise in income over the last few quarters.
During a media briefing, Canara Bank’s MD and CEO said the bank aims to raise a total of Rs.9,500 crore via Tier I and Tier II bonds later this year. “We will tap the market when pricing becomes favourable,” he said.
Apart from that, the company is also aiming to list its two subsidiaries- Canara Robeco Mutual Fund and Canara HSBC Life Insurance this year, subject to SEBI’s approval. ”These firms will be listed on BSE and NSE in the next two to three months,” he added.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
