What drove Canara Bank’s Q1 net profit surge of 22% to Rs 4,752 crore?
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Synopsis
Canara Bank's recent Q1 FY26 results reveal a stunning 21.7% YoY net profit increase, reaching Rs 4,752 crore. This impressive growth, alongside improved asset quality, showcases the bank's strong financial health. Dive into the full report to understand the drivers behind this remarkable performance.
Key Takeaways
- Net profit increased to Rs 4,752 crore.
- Other income rose to Rs 7,060 crore.
- Global advances grew by 12.4% YoY.
- Deposits increased by 10%.
- Gross NPAs fell to 2.69%.
Mumbai, July 24 (NationPress) Canara Bank, a prominent public sector bank, announced on Thursday a remarkable 21.7% year-on-year (YoY) increase in its net profit, which climbed to Rs 4,752 crore in the first quarter of the financial year 2025-26 (Q1 FY26), up from Rs 3,905 crore during the same quarter last year (Q1 FY25).
The bank also reported substantial growth in its other income, which surged to Rs 7,060 crore, compared to Rs 5,318 crore in the same quarter of the previous year, as per its stock exchange filing.
Canara Bank saw its global advances, or total loans, rise by 12.4% YoY to Rs 10.96 lakh crore. Deposits increased by 10%, reaching Rs 14.67 lakh crore.
On the other hand, the bank's net interest income (NII), which is the difference between the interest earned and interest paid, experienced a slight decline, according to its regulatory filing.
The NII for the April-June quarter was Rs 9,009 crore, down 1.7% from Rs 9,166 crore in the previous year.
The asset quality of the bank has further improved sequentially. The gross non-performing assets (NPAs) fell to 2.69% from 2.94% in the previous quarter.
Moreover, the net NPA decreased to 0.63% from 0.7% last quarter, showcasing the bank's enhanced performance in managing bad loans.
Provisions for tax and contingencies rose to Rs 2,351 crore, up from Rs 1,831 crore in the previous quarter.
Provisions for NPAs also dropped to Rs 1,845 crore compared to Rs 2,847 crore in the last quarter, reflecting improved asset quality and recoveries.
New slippages, or accounts transitioning into NPAs, decreased during the quarter. Slippages in the June quarter amounted to Rs 2,129 crore, down from Rs 2,655 crore in the March quarter.
The recoveries from written-off accounts during the quarter were Rs 1,414 crore, according to its filing. Following the announcement of these results, shares of Canara Bank surged by 4% to Rs 112.5 during the intra-day trading session.
Point of View
Canara Bank's latest quarterly results reflect a commendable growth trajectory despite slight declines in net interest income. The improvement in asset quality and reduction in NPAs indicates effective management strategies that align with the bank's long-term objectives. This performance not only reinforces investor confidence but also positions the bank favorably within the public sector banking landscape.
NationPress
27/07/2025
Frequently Asked Questions
What is Canara Bank's net profit for Q1 FY26?
Canara Bank reported a net profit of Rs 4,752 crore for Q1 FY26, marking a 21.7% increase year-on-year.
How did the asset quality of Canara Bank change?
The asset quality improved, with gross NPAs reducing to 2.69% from 2.94% in the previous quarter.
What was the NII for Canara Bank in Q1 FY26?
The net interest income for Q1 FY26 stood at Rs 9,009 crore, a decrease of 1.7% from the previous year.
