A rise in operating profit and improvement in asset quality helped Canara Bank report a standalone net profit of Rs 4,752 crore, up 22% on the year for the June quarter. However, a fall in net interest income capped this growth.
Sequentially, the state-owned bank's bottom line fell 5%. Operating profit rose over 12.3% on the year to Rs 8,553 crore.
Provisions and contingencies of the bank were up by 3% on the year to Rs 2,351 crore.
However, the asset quality of the bank improved, with the gross non-performing assets ratio falling to 2.69% at the end of June as compared to 2.94% a quarter ago. Net NPA came in at 0.63% as against 0.7% in Jan-Mar.
The bank took a setback on the profitability front, with its NII falling by nearly 2% on the year to Rs 9,009 crore. Consequently, net interest margins of the bank were at 2.55% at the end of June as against 2.80% a quarter ago.
Overall, loan growth remained strong, with the bank's gross advances rising over 12% on the year to Rs 10.96 lakh crore and global deposits at Rs 14.67 lakh crore, up 9.9% on the year.
Within credit, the rural, agriculture, and micro, small, and medium enterprises segment, which is called 'RAM Credit,' grew by nearly 15% on the year.
Canara Bank's retail book grew by 33.92% on the year, with housing loan growth at 13.92% and vehicle loans at 22.09%.
For March 2026, the state-owned bank has guided a global advances growth at 10-11% on the year, followed by global deposit books growing at 9-10%.
The bank expects its NIM to be at 2.75-2.80% by the end of the current financial year, with gross NPA at 2.50% and net NPA at 0.60%.
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