Canara Bank
NII growth improves as NIM rises and loan growth jumps: Interest income increased 11% to Rs 35159.39 crore, while interest expenses moved up 8% to Rs 24154.64 crore in Q2FY2027. NII improved 20% to Rs 11004.75 crore in Q2FY2027.
Margins improve: The bank has shown 38 bps YoY decline in cost of deposits to 5.27%, while yield on advances declined 37 bps YoY to 8.03% in Q2FY2027. Thus, the NIM has improved 5 bps YoY to 2.55%, while rose 3 bps qoq to 2.55% in Q2FY2027.
Core fee income improves, treasury income declines: The non-interest income of the bank declined 18% to Rs 5771.80 crore in Q2FY2027. Bank has posted 7% growth in core fee income to Rs 2755 crore, while the treasury income plunged 87% to Rs 153 crore and forex income fell 15% to Rs 278 crore. The recoveries income also eased 25% to Rs 1260 crore. The other non-interest income rose 4% to Rs 1258 crore in Q2FY2027.
Expense ratio rises slightly: The operating expenses of the bank increased 5% to Rs 8018.42 crore, as other expenses moved up 15% to Rs 3210.09 crore, while employee expenses were flat at Rs 4808.33 crore in Q2FY2027. Cost to income ratio deteriorated to 47.8% in Q2FY2027 compared with 47.0% in Q2FY2026. Operating Profit moved up 2% to Rs 8758.13 crore.
Provisions and contingencies decline: The bank has shown 24% decline in provisions to Rs 1782 crore. The loan loss provisions fell 11% to Rs 1339 crore, while standard asset provisions declined 7% to Rs 311 crore and other provisions fell 32% to Rs 573 crore in Q2FY2027. Further, the bank has written back investment provisions of Rs 441 crore in Q2FY2027.
PBT increased 12% to Rs 6976.16 crore in Q2FY2027. Effective tax rate increased to 25.8% in Q2FY2027 from 23.4% in Q2FY2026. Net Profit increased 8% YoY to Rs 5174.76 crore in Q2FY2027.
Asset quality improves: The bank has improved asset quality in Q2FY2027.
The fresh slippages of loans stood at Rs 1916 crore in Q2FY2027 compared with Rs 1801 crore in previous quarter and Rs 2102 crore in the corresponding quarter last year. The recoveries and upgradations of NPAs stood at Rs 719 crore and upgrades were at Rs 452 crore, while the write-off of loans was at Rs 2800 crore in Q2FY2027. Provision coverage ratio improved to 95.34% at end September 2026 compared to 94.76% a quarter ago and 93.59% a year ago. The capital adequacy ratio of the bank stood at 17.2% with Tier I ratio at 15.1% at end September 2026. The risk weighted assets of the bank has increased 13% YoY to Rs 852991 crore end September 2026.Business Highlights:
Business growth improves: The business of the bank has increased at an accelerated pace of 16% YoY to Rs 3072366 crore end September 2026, as advances growth improved to 19% to Rs 1375060 crore and deposits growth gained to 13% to Rs 1697306 crore at end September 2026. With the faster growth in advances, the credit to deposit ratio rose to 81.0% at end September 2026 from 76.7% at end September 2025.
CASA deposits ratio eases: The CASA deposits of the bank increased 5% YoY to Rs 448889 crore at end September 2026. The current account deposits slipped 17% to Rs 60401 crore, while saving account deposits increased 9% to Rs 377245 crore end September 2026. The CASA ratio eased to 26.4% at end September 2026 compared to 28.5% at end September 2025, while declined from 27.2% at end September 2026. The term deposits have increased 16% to Rs 1248417 crore end September 2026. The overseas deposits surged 42% to Rs 149326 crore end September 2026.
Strong loan growth: Within the loan book, the retail loans increased 32% YoY to Rs 330587 crore at end September 2026, while credit to agriculture increased 14% to Rs 304123 crore and MSME credit increased 15% to Rs 177600 crore. The corporate credit has also increased 17% to Rs 562750 crore end September 2026. The overseas credit has increased 58% to Rs 110307 crore end September 2026. The share of retail, agriculture and MSME (RAM) improved to 59.1% at end September 2026 compared to 58.3% at end September 2025.
Investment book of the bank increased 4% YoY to Rs 413480 crore at end September 2026. The SLR book moved up 6% to Rs 362238 crore, while non SLR book slipped 16% to Rs 45228 crore at end September 2026. The AFS book galloped 8% to Rs 63633 crore, while HTM book rose increased 7% to Rs 325099 crore at end September 2026.
Branch expansion: The bank has added 15 branches and reduced 283 ATMs in Q2FY2027, taking overall tally to 10150 branches and 10764 ATM`s end September 2026.
Book value of the bank stood at Rs 128.7 per share at end September 2026, while the adjusted book value (net of NNPA and 10% of restructured advances) was Rs 123.1 per share at end September 2026.
Financial Performance H1FY2027:
Bank has posted 5% increase in net profit to Rs 10030.58 crore in the half year ended September 2026 (H1FY2027). The net interest income increased 17% to Rs 21220.02 crore, while non-interest income fell 11% to Rs 12499.02 crore. Net total income increased 5% to Rs 33719.04 crore in H1FY2027. The operating expenses increased 8% to Rs 16325.05 crore, while provision and contingencies dipped 18% to Rs 3862.01 crore. PBT increased 9% to Rs 13531.98 crore in H1FY2027. The cost-to-income ratio rose to 48.4% in H1FY2027 compared to 46.9% in H1FY2026. An effective tax rate rose to 25.9% in H1FY2027 compared to 23.4% in H1FY2026. The net profit has increased 5% to Rs 10030.58 crore in H1FY2027.| Canara Bank: Results | ||||||||||
| Particulars | 2609 (3) | 2509 (3) | Var % | 2609 (6) | 2509 (6) | Var % | 2603 (12) | 2503 (12) | Var % |
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| Interest Earned | 35159.39 | 31543.89 | 11 | 68116.43 | 62546.72 | 9 | 126366.17 | 119755.07 | 6 |
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| Interest Expended | 24154.64 | 22402.70 | 8 | 46896.41 | 44396.77 | 6 | 89155.93 | 82683.11 | 8 |
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| Net Interest Income | 11004.75 | 9141.19 | 20 | 21220.02 | 18149.95 | 17 | 37210.24 | 37071.96 | 0 |
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| Other Income | 5771.80 | 7053.84 | -18 | 12499.02 | 14114.32 | -11 | 24908.48 | 22452.80 | 11 |
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| Net Total Income | 16776.55 | 16195.03 | 4 | 33719.04 | 32264.27 | 5 | 62118.72 | 59524.76 | 4 |
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| Operating Expenses | 8018.42 | 7606.90 | 5 | 16325.05 | 15122.55 | 8 | 31029.71 | 28134.50 | 10 |
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| Operating Profits | 8758.13 | 8588.13 | 2 | 17393.99 | 17141.72 | 1 | 31089.01 | 31390.26 | -1 |
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| Provisions & Contingencies | 1781.97 | 2354.17 | -24 | 3862.01 | 4705.73 | -18 | 8111.90 | 8763.59 | -7 |
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| PBT | 6976.16 | 6233.96 | 12 | 13531.98 | 12435.99 | 9 | 22977.11 | 22626.67 | 2 |
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| EO | 0.00 | 0.00 | - | 0.00 | 0.00 | - | 1929.56 | 0.00 | - |
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| PBT after EO | 6976.16 | 6233.96 | 12 | 13531.98 | 12435.99 | 9 | 24906.67 | 22626.67 | 10 |
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| Provision for tax | 1801.40 | 1460.00 | 23 | 3501.40 | 2910.00 | 20 | 5720.00 | 5600.00 | 2 |
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| PAT | 5174.76 | 4773.96 | 8 | 10030.58 | 9525.99 | 5 | 19186.67 | 17026.67 | 13 |
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| EPS*(Rs) | 22.8 | 21.1 | 44.2 | 21.0 | 19.5 | 18.8 |
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| Equity | 1814.1 | 1814.1 | 1814.1 | 1814.1 | 1814.1 | 1814.1 |
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| Adj BV (Rs) | 123.1 | 104.0 | 123.1 | 104.0 | 110.9 | 93.2 |
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| * 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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