Canara Bank, the state-owned lender, reported a 19% year-on-year (YoY) rise in net profit to ₹4,773.96 crore for the second quarter (Q2) of FY2025-26, compared to ₹4,014.53 crore in the same period last year.
However, the bank’s Net Interest Income (NII) registered a 2% decline, coming in at ₹9,141 crore, down from ₹9,315 crore in the year-ago quarter.
The lender’s Pre-Provision Operating Profit (PPOP) rose 12.2% YoY to ₹8,588.13 crore, up from ₹7,653.83 crore, indicating improved operational efficiency despite margin pressure.
💰 Asset Quality Improves
Canara Bank’s asset quality showed a notable improvement during the September quarter.
- Gross Non-Performing Assets (GNPA) declined 8.39% QoQ to ₹27,040.27 crore, from ₹29,518.43 crore.
- The Gross NPA ratio fell to 2.35%, compared with 2.69% in the previous quarter.
- Net NPA dropped 9.63% QoQ to ₹6,113.22 crore, while the Net NPA ratio improved to 0.54% from 0.63%.
Fresh slippages for the quarter stood at ₹2,309 crore, slightly higher than ₹2,129 crore in the June quarter, but the slippage ratio improved to 0.76%, down by 24 basis points.
Provisions for the quarter were ₹2,354.17 crore, nearly unchanged from ₹2,351.56 crore in Q1 FY26, and slightly up from ₹2,251.29 crore in the year-ago period. The Provision Coverage Ratio (PCR) improved by 270 basis points, reaching 93.59%.
🏦 Business Growth and Balance Sheet Highlights
The bank’s global business expanded 13.55% YoY, reaching ₹26,78,963 crore as of September 2025.
- Global deposits rose 13.40% YoY to ₹15,27,922 crore, compared to ₹13,47,347 crore last year.
- Domestic deposits stood at ₹13,94,999 crore, growing 12.62% YoY.
- CASA deposits climbed 10.53% YoY to ₹4,28,115 crore, showing healthy growth in low-cost deposits.
- Global advances increased 13.74% YoY to ₹11,51,041 crore, up from ₹10,11,997 crore in the same quarter last year.
Meanwhile, the bank’s Credit Cost improved by 29 basis points to 0.68%, while the Slippage Ratio stood at 0.76%, reflecting enhanced asset quality management.
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