Mumbai, July 24 Canara Bank, a public sector lender, on Thursday reported a strong 21.7 per cent year-on-year (YoY) jump in its net profit, which rose to Rs 4,752 crore the first quarter of the financial year 2025-26 (Q1 FY26), compared to Rs 3,905 crore in the same quarter previous year (Q1 FY25).
Canara Bank also saw strong growth in its other income, which rose to Rs 7,060 crore, up from Rs 5,318 crore in the same quarter of the previous year, according to its stock exchange filing.
The bank’s global advances, or total loans given, grew by 12.4 per cent YoY to Rs 10.96 lakh crore. Deposits also rose by 10 per cent, reaching Rs 14.67 lakh crore.
However, the bank’s net interest income (NII), which is the difference between interest earned and interest paid, declined slightly, as per its regulatory filing.
NII for the April-June quarter stood at Rs 9,009 crore, down 1.7 per cent from Rs 9,166 crore in the year-ago period.
The asset quality of the bank improved further on a sequential basis. Gross non-performing assets (NPAs) came down to 2.69 per cent from 2.94 per cent in the previous quarter.
Similarly, Net NPA fell to 0.63 per cent from 0.7 per cent last quarter -- showing the bank’s improved performance in managing bad loans.
Provisions for tax and contingencies stood at Rs 2,351 crore, up from Rs 1,831 crore in the previous quarter.
Provisions for NPAs also came down to Rs 1,845 crore, compared to Rs 2,847 crore in the previous quarter -- reflecting better asset quality and recoveries.
Fresh slippages -- or new accounts turning into NPAs -- came down during the quarter. Slippages in the June quarter stood at Rs 2,129 crore, compared to Rs 2,655 crore in the March quarter.
Recoveries from written-off accounts during the quarter were Rs 1,414 crore, as per its filing. Following the announcement of the results, shares of Canara Bank surged 4 per cent to Rs 112.5 during the intra-day trading session.
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