Banking & NBFCs · Daily brief

Canara Bank Q2 Net Profit Hits Record ₹5,175 Crore as NII Surges 20.4%; Global Business Crosses ₹30 Lakh Crore

State-owned Canara Bank has reported an 8.4% year-on-year (YoY) increase in standalone net profit to ₹5,175 crore for the second quarter ended September 30, 2026 (Q2 FY27), registering the highest-ever quarterly profit in the bank’s operating history.

FINSAMUDRA DESK · 15 Oct 2026, 2:02 pm IST · 2 MIN

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The performance was anchored by robust credit growth, disciplined funding costs, and substantial asset quality improvements, which propelled the lender's total global business past the ₹30 lakh crore threshold to ₹30,72,365 crore (a 15.88% YoY expansion).

20.4% NII Expansion and Operating Highlights

Canara Bank’s core revenue trajectory showed sustained momentum during the quarter:

Net Interest Income (NII): NII surged 20.4% YoY to ₹11,005 crore, compared to ₹9,141 crore in the corresponding quarter of the previous fiscal year.
Topline Growth: Total income increased to ₹40,931 crore (from ₹38,598 crore in Q2 FY26), with core interest income rising to ₹35,159 crore against ₹31,544 crore a year ago.
Operating Profitability: Operating profit expanded to ₹8,758 crore, up from ₹8,588 crore in Q2 FY26.

Multi-Year Highs in Asset Quality: Gross NPA at 1.33%

Gross NPA Compression: Gross Non-Performing Assets (GNPAs) declined by 102 basis points YoY to 1.33% of gross advances at the end of September 2026, down from 2.35% as of September 2025.
Net NPA at 0.30%: Net bad loans eased to 0.30%, compared to 0.54% in the year-ago period.
Provisioning Relief: Driven by lower fresh slippages and healthy recoveries, provisions for bad loans declined to ₹1,339 crore, down from ₹1,504 crore in the second quarter of the previous financial year.

Under the leadership of Managing Director & CEO Brajesh Kumar Singh, who assumed charge in June 2026, Canara Bank’s multi-pronged expansion across retail, agriculture, and MSME (RAM) segments alongside corporate lending continues to anchor stable balance-sheet expansion across fiscal 2027.

Canara Bank Q2 Net Profit Hits Record ₹5,175 Crore as NII Surges 20.4%; Global Business Crosses ₹30 Lakh Crore

20.4% NII Expansion and Operating Highlights

Multi-Year Highs in Asset Quality: Gross NPA at 1.33%

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20.4% NII Expansion and Operating Highlights

Multi-Year Highs in Asset Quality: Gross NPA at 1.33%

More from Banking & NBFCs

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