Asset quality improves: The bank has improved asset quality in Q1FY2026.
The fresh slippages of loans stood at Rs 2166 crore in Q1FY2026 compared with 2702 crore in previous quarter and Rs 3337 crore in the corresponding quarter last year. The recoveries of NPAs stood at Rs 505 crore, upgradations at Rs 558 crore and the write-off of loans was at Rs 3115 crore in Q1FY2026. Provision coverage ratio improved to 93.17% at end June 2025 compared to 92.70% a quarter ago and 89.22% a year ago. The capital adequacy ratio of the bank stood at 16.5% with Tier I ratio at 14.6% at end June 2025. The risk weighted assets of the bank has increased 11% YoY to Rs 755624 crore end June 2025.| Asset Quality Indicators: Canara Bank | ||||||||
| ' | Jun-25 | Mar-25 | Dec-24 | Sep-24 | Jun-24 | Variation | ' | |
| QoQ | YoY | ' | ||||||
| Gross NPA (Rs Crore) | 29518.43 | 31530.03 | 35060.64 | 37733.30 | 40356.38 | -6 | -27 | ' |
| Net NPA (Rs Crore) | 6765.24 | 7353.31 | 9081.10 | 9777.44 | 11701.77 | -8 | -42 | ' |
| % Gross NPA | 2.69 | 2.94 | 3.34 | 3.73 | 4.14 | -25 | -145 | ' |
| % Net NPA | 0.63 | 0.70 | 0.89 | 0.99 | 1.24 | -7 | -61 | ' |
| % PCR | 93.17 | 92.70 | 91.26 | 90.89 | 89.22 | 47 | 395 | ' |
| % CRAR - Basel III | 16.52 | 16.33 | 16.44 | 16.57 | 16.38 | 19 | 14 | ' |
| % CRAR - Tier I - Basel III | 14.58 | 14.37 | 14.55 | 14.64 | 14.37 | 21 | 21 | ' |
| Variation in basis points for figures given in percentages and in % for figures in Rs crore | ||||||||
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Business Highlights:
Healthy business growth: The business of the bank has increased 11% YoY to Rs 2563984 crore end June 2025, driven by 12% surge in advances to Rs 1096329 crore. Deposits rose 10% to Rs 1467655 crore at end June 2025.
CASA deposits ratio steady: The CASA deposits of the bank increased 9% YoY to Rs 414976 crore at end June 2025. The current account deposits increased 10% to Rs 54045 crore, while saving account deposits rose 3% to Rs 341696 crore end June 2025. The CASA ratio was nearly flat at 28.3% at end June 2025 compared to 28.6% at end June 2024 and 28.5% a quarter ago. The term deposits have increased 10% to Rs 1052679 crore end June 2025. Overseas deposits have increased 24% to Rs 128913 crore end June 2025.
Strong loan growth: Advances growth was driven by retail loans rising 34% YoY to Rs 235418 crore at end June 2025, while credit to agriculture increased 3% to Rs 248836 crore and MSME 11% to Rs 146646 crore at end June 2025. The corporate credit has moved up 9% to Rs 465429 crore end June 2025. The overseas credit has jumped 17% to Rs 64187 crore end June 2025.
Investment book of the bank increased 6% YoY to Rs 401621 crore at end June 2025. The SLR book moved up 2% to Rs 342441 crore, while non SLR book jumped 38% to Rs 56248 crore at end June 2025. The AFS book increased 12% to Rs 61176 crore, while HTM book rose 3% to Rs 306660 crore at end June 2025.
Margins decline: The bank has shown 2 bps YoY rise in cost of deposits to 5.27%, while yield on advances dipped 19 bps YoY to 8.47% in Q1FY2026. Thus, the NIM has declined 34 bps YoY, while eased 18 bps qoq to 2.55% in Q1FY2026.
Branch expansion: The bank has added 12 branches and reduced 1107 ATMs in Q1FY2026, taking overall tally to 9865 branches and 10847 ATM`s end June 2025.
Book value of the bank stood at Rs 108.0 per share at end June 2025, while the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 99.0 per share at end June 2025.
Quarterly Performance
NII decline as NIM dip: Bank has recorded 8% increase in the interest earned at Rs 31002.83 crore, while interest expenses increased 13% to Rs 21994.07 crore in Q1FY2026. NII declined 2% to Rs 9008.76 crore in the quarter ended June 2025.
Healthy growth in the core fee income: Bank has posted strong 16% growth in core fee income to Rs 2223 crore, while the forex income jumped 149% to Rs 376 crore and the treasury income zoomed 363% to Rs 1617 crore, leading to 33% surge in the overall non-interest income to Rs 7060.48 crore in the quarter ended June 2025. However, the recoveries were flat at Rs 1160 crore and other income declined 4% to Rs 1684 crore.
Expenses ratio improves: The operating expenses of the bank increased 9% to Rs 7515.65 crore, as other expenses moved up 3% to Rs 2720.11 crore, while employee expenses increased 13% to Rs 4795.54 crore in Q1FY2026. Cost to income ratio improved to 46.8% in Q1FY2026 compared with 47.4% in Q1FY2025, helping the Operating Profit to increase 12% to Rs 8553.59 crore.
Provisions and contingencies up marginally: The bank has shown 3% rise in provisions to Rs 2351.56 crore. The loan loss provisions declined 15% to Rs 1845 crore, while the bank has written back investment provisions of Rs 55 crore. On the other hand, the standard asset provisions jumped 438% to Rs 113 crore and other provisions galloped 108% to Rs 449 crore in Q1FY2025.
Effective tax rate declined to 23.4% in Q1FY2026 from 26.8% in Q1FY2025. Net Profit rose by 22% YoY to Rs 4752.03 crore during quarter ended June 2025.
Financial Performance FY2025:
Bank has posted 17% increase in net profit to Rs 17026.67 crore in the year ended March 2025 (FY2025). The net interest income increased 1% to Rs 37071.96 crore, while non-interest income moved up 18% to Rs 22452.80 crore, pushing up net total income by 7% to Rs 59524.76 crore in FY2025. The operating expenses increased 8% to Rs 28134.50 crore, while provision and contingencies declined 10% to Rs 8763.59 crore, allowing profit before tax to increase 15% to Rs 22626.67 crore in FY2025. The cost-to-income ratio rose slightly to 47.3% in FY2025 compared to 47.0% in FY2024. An effective tax rate declined to 24.7% in FY2025 compared to 26.1% in FY2024. The net profit has increased 17% to Rs 17026.67 crore in FY2025.| Canara Bank: Results | ||||||
| Particulars | 2506 (3) | 2406 (3) | Var % | 2503 (12) | 2403 (12) | Var % |
| Interest Earned | 31002.83 | 28701.35 | 8 | 119755.07 | 108687.93 | 10 |
| Interest Expended | 21994.07 | 19535.08 | 13 | 82683.11 | 72121.99 | 15 |
| Net Interest Income | 9008.76 | 9166.27 | -2 | 37071.96 | 36565.94 | 1 |
| Other Income | 7060.48 | 5318.88 | 33 | 22452.80 | 18966.44 | 18 |
| Net Total Income | 16069.24 | 14485.15 | 11 | 59524.76 | 55532.38 | 7 |
| Operating Expenses | 7515.65 | 6869.01 | 9 | 28134.50 | 26119.79 | 8 |
| Operating Profits | 8553.59 | 7616.14 | 12 | 31390.26 | 29412.59 | 7 |
| Provisions & Contingencies | 2351.56 | 2282.34 | 3 | 8763.59 | 9707.61 | -10 |
| Profit Before Tax | 6202.03 | 5333.80 | 16 | 22626.67 | 19704.98 | 15 |
| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - |
| PBT after EO | 6202.03 | 5333.80 | 16 | 22626.67 | 19704.98 | 15 |
| Provision for tax | 1450.00 | 1428.52 | 2 | 5600.00 | 5150.65 | 9 |
| PAT | 4752.03 | 3905.28 | 22 | 17026.67 | 14554.33 | 17 |
| EPS*(Rs) | 21.0 | 17.2 | ' | 18.8 | 16.0 | ' |
| Equity | 1814.1 | 1814.1 | ' | 1814.1 | 1814.1 | ' |
| Adj BV (Rs) | 99.0 | 77.2 | ' | 93.2 | 70.4 | ' |
| * EPS and Adj BV are calculated on diluted equity as given for each year. Face Value: Rs 2, Figures in Rs crore | ||||||
| Source: Capitaline Corporate Database | ||||||
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