Canara Bank Q2 FY26 Net Profit Rises 18.7% YoY to ₹4,866 Crore; Shares Gain Over 3%

Mumbai, October 30, 2025: Canara Bank (NSE: CANBK, BSE: 532483) reported a strong set of numbers for the second quarter of FY26, with consolidated net profit rising 18.7% year-on-year (YoY) to ₹4,865.76 crore, compared to ₹4,100.32 crore in the same quarter last year. Sequentially, profit edged up from ₹4,836.21 crore reported in Q1 FY26, supported by healthy loan growth and stable asset quality.

Following the upbeat results, Canara Bank’s share price gained 3.13%, trading at ₹132.80 as of 2:39 PM on Thursday. The stock opened at ₹129.00, touched an intraday high of ₹134.25, and a low of ₹127.80 during the session. The rally reflects positive investor sentiment on the bank’s improved profitability. The company’s market capitalisation currently stands at ₹1.20 lakh crore. The stock traded at a P/E ratio of 7.23 with a dividend yield of 3.01%. Shares in the company have touched a high of ₹134.25 and a low of ₹78.60 in 52 weeks. The quarterly dividend declared by the bank is ₹1.00 per share.

Canara Bank Q2 FY26 Financial Performance

The bank said it recorded a net profit of ₹4,865.8 crore for the quarter ended September 2025, up by 18.7% YoY from ₹4,100.3 crore in the same period last year and up 0.6% sequentially over ₹4,836.2 crore in Q1 FY26.

The bank’s total income increased 10.5% YoY to ₹42,013.7 crore from ₹38,006.1 crore, driven by increased interest income. Interest earned increased 6.3% YoY and 1.7% QoQ to ₹32,071.9 crore, supported by steady credit growth and improving yields.

Operating profit rose 12.1% to ₹8,704.6 crore as compared with ₹7,764.5 crore in the same period last year and 0.4% higher than the June quarter. Provisions (other than tax) at ₹2,354 crore were down 0.2% QoQ but up 4.5% YoY. It has reported ₹5.35 EPS for Q2 of FY25, against ₹4.62 during Q2 FY25.

Asset Quality and Capital Position

The improvement in the quality of assets at Canara Bank continued into Q2 FY26, with both gross and net NPAs declining sequentially as well as on a year-over-year basis. Gross NPAs came in at ₹27,049.70 crore versus ₹29,535.08 crore in Q1 FY26 and ₹37,785.09 crore in Q2 FY25. The Gross NPA ratio improved to 2.35% from 2.69% in the previous quarter and 3.73% a year ago.

The ratio of Net NPA decreased to 0.54%, compared with 0.63% in Q1 FY26 and 0.99% in Q2 FY25. The Provision Coverage Ratio was around 77%, compared with ~76% in the previous quarter and ~73% in the same period last year.

The Capital Adequacy Ratio stood at 16.26% (Basel III); it was 16.59% in Q1 FY26 and 16.62% in Q2 FY25. RoA (Annualised) was 1.10%, compared with 1.17% in Q1 FY26 and 1.05% in Q2 FY25.

Asset quality continued to improve, with both gross and net NPAs showing declines on a sequential and annual basis. The Gross NPA ratio has improved to 2.35%, while Net NPA is down to 0.54%, on the back of prudent provisioning and healthy recoveries.

Operational Performance

Interest income rose 10.5% year-on-year (YoY) to ₹32,072 crore, driven by growth in advances and investment income. Operating expenses inched up to ₹10,896 crore from ₹9,814 crore in the year-ago period, reflecting controlled cost escalation. Operating profit before provisions increased 12.1% YoY to ₹8,705 crore. The bank maintained a healthy Cost-to-Income ratio of 25.9%, underscoring effective cost management despite ongoing inflationary pressures.

REF: https://nsearchives.nseindia.com/corporate/CANBK_30102025123252_OutcomeBM.pdf

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