Canara Bank Q2 profit rises 19% to Rs 4,774 cr

New Delhi, Oct 30 (PTI) State-owned Canara Bank on Thursday reported 19 per cent increase in net profit at Rs 4,774 crore for the second quarter ended September on the back of decline in bad loans.

The bank had earned a net profit of Rs 4,015 crore in the year-ago period.

Total income increased to Rs 38,598 crore in the second quarter from Rs 34,721 crore in the same period of the previous fiscal, Canara Bank said in a regulatory filing.

Interest income improved to Rs 31,544 crore from Rs 29,740 crore in the same quarter a year ago.

However, Net Interest Income witnessed moderation in the quarter to Rs 9,141 crore as against Rs 9,315 crore a year ago.

Operating profit also increased to Rs 8,588 crore as against Rs 7,654 crore in the same quarter a year ago.

In terms of asset quality, gross non-performing assets (NPAs) of the bank moderated to 2.35 per cent of gross advances at the end of September 2025 as against 3.73 per cent by the year-ago period.

Similarly, net NPAs or bad loans came down to 0.54 per cent at the end of September 2025 as compared to 0.98 per cent at the end of September 2024.

As a result, the provision for bad loans declined to Rs 1,504 crore as against Rs 2,587 crore in the second quarter of the last financial year.

During the quarter, the Provision Coverage Ratio (PCR) improved to 93.59 per cent as on September 30, 2025 as against 90.89 per cent at the end of second quarter of last fiscal.

With regard to capital adequacy, Capital to Risk-Weighted Assets Ratio (CRAR) moderated to 16.20 per cent from 16.57 per cent.

Commenting on the numbers, Canara Bank MD and CEO K Satyanarayana Raju said the bank has sufficient capital to grow business at this pace and there is no requirement of additional capital during the current financial year.

Going forward, in the third quarter, he said, there would be accretion to CRAR as the bank has monetised two subsidiaries -- Canara Robeco Mutual Fund and Canara HSBC Life Insurance.

Net Interest Margin (NIM) moderated to 2.52 per cent from 2.88 per cent in the same quarter in the previous year.

The bank aims to achieve NIM of 2.75-2.8 per cent at the end of current fiscal.

The margin should get better with repricing of liability products in the later half of the current financial year, he added.

Total business of the bank grew 13.5 per cent to Rs 26,78,963 crore from Rs 23,59,344 crore as of September 2024.

Total deposits registered a growth of 13.4 per cent to Rs 15,27,922 crore from Rs 13,47,347 crore at the end of second quarter of previous fiscal while total advances increased by 13.7 per cent to Rs 11,51,041 crore as against Rs 10,11,997 crore. PTI DP DP ANU ANU