State-owned Canara Bank plans to recruit between 3,000 and 4,000 employees during fiscal 2027 as it strengthens its workforce to support business growth, Managing Director and CEO Brajesh Kumar Singh said while addressing the bank's post-earnings conference call.
The lender remains optimistic about the business environment, with the management indicating that credit demand continues to be robust across segments and is expected to sustain through the second quarter.
Singh said the bank would hire 3,000-4,000 employees during fiscal 2027 to support its expanding operations. He added that the credit-deposit ratio remains at comfortable levels, while the bank is witnessing healthy traction across all lending segments.
The management expects demand momentum to continue in the coming quarters, with gold loans likely to emerge as a key growth driver.
Asset Quality Remains Stable
On asset quality, the CEO said the bank has not witnessed any impact from El Niño-related developments on its loan book so far. There were no slippages in the large corporate portfolio during the quarter, reflecting the continued resilience of the bank's wholesale loan book, he added. Total slippages stood at around Rs 1,780 crore, primarily originating from smaller accounts in the MSME and agriculture segments.
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The bank also said it has sanctioned loans worth more than Rs 11,000 crore under the Emergency Credit Line Guarantee Scheme (ECLGS).
Canara Bank plans to reduce bulk deposits by around Rs 10,000 crore as part of its liability management strategy. To strengthen its foreign currency funding base, the lender is offering leverage of up to nine times on Foreign Currency Non-Resident (Bank) [FCNR(B)] deposits.
The bank has already raised $775 million through FCNR(B) deposits during the current month and aims to mobilise a total of $1.5 billion through FCNR deposits. It also plans to raise another $1 billion through External Commercial Borrowings (ECB) and Overseas Foreign Currency Borrowings (OFCB).
The management acknowledged that treasury income remained subdued during the first quarter. However, it expects mark-to-market (MTM) losses to decline going forward, which should support treasury performance in the coming quarters. On the implementation of Expected Credit Loss (ECL) norms, Singh said the bank will be fully prepared by April next year.
He added that Canara Bank expects to require additional provisions of around Rs 10,000 crore to Rs 12,000 crore under the ECL framework.
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