Canara Bank Q1 Results: PAT surges nearly 22% YoY, NII marginally down by 2%

Canara Bank on Thursday posted a 21.7% year-on-year (YoY) surge in its standalone profit after tax (PAT) for the first quarter of the fiscal year 2026, which stood at Rs 4,752 crore, while its net interest income (NII) slid slightly by 1.7% YoY.

The NII stood at Rs 9,009 crore for Q1FY26, as against Rs 9,166 crore reported in the year-ago period. Operating profit for the quarter stood at Rs 8,554 crore, marking a 12.32% YoY growth.

The bank’s global business stood at Rs 25,63,984 crore, up 10.98% YoY. Global deposits rose 9.92% to Rs 14,67,655 crore, while gross advances increased by 12.42% YoY to Rs 10,96,329 crore. RAM (Retail, Agriculture, MSME) credit expanded by 14.90%.

In terms of asset quality, Gross NPA ratio improved to 2.69%, down 145 bps YoY, and Net NPA ratio declined to 0.63%, improving by 61 bps. The Provision Coverage Ratio (PCR) stood at 93.17%, up by 395 bps.

Other key improvements included:

• Credit cost at 0.72%, improved by 18 bps.
• Slippage ratio at 0.80%, improved by 52 bps.

Within retail credit, Canara Bank recorded an impressive 33.92% growth, with housing loans rising by 13.92% and vehicle loans surging by 22.09%. Fee-based income came in at Rs 2,223 crore, up 16.39% YoY.

Earnings per share (EPS) were reported at Rs 21.01, registering a 21.66% YoY increase. Return on Assets (RoA) stood at 1.14%, up by 9 basis points (bps), while CET-1 ratio improved by 24 bps to 12.29%.

As of June 30, the bank has 9,861 branches, out of which 3,143 are rural, 2,903 are in semi-urban areas,1,951 are urban branches and 1,864 are in metro cities, along with 7,907 ATMs.

The bank also has 4 overseas branches in London, New York, Dubai, and IBU Gift City.

After reporting the Q1 results, the shares of Canara Bank were trading 4.3% higher at Rs 112.45 on the BSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

…moreless

…moreless