R. ARIVANANTHAM
CHENNAI, JULY 28
Demonstrating resilience amid evolving interest-rate dynamics, regulatory changes and intense competition, Canara Bank delivered another quarter of healthy and broad-based growth in Q1 FY27, with strong credit expansion, improving profitability and one of the best asset-quality profiles in the public sector banking industry, reinforcing confidence in its strategy for sustained growth during the current financial year.
The bank’s global business expanded 14.37% year-on-year to ₹29.05 lakh crore, driven by a 17.97% rise in global advances to ₹12.93 lakh crore and an 11.63% increase in global deposits to ₹16.12 lakh crore.
- Global business crosses ₹29 lakh crore as advances outpace industry with nearly 18% year-on-year growth
- Net profit rises to ₹4,856 crore while gross NPA falls to a record-low 1.57%, reflecting superior asset quality
- Retail lending surges 36%; RAM credit, housing and vehicle loans drive broad-based business momentum
- MD & CEO Brajesh Kumar Singh bets on all-sector growth, AI-led banking and deeper MSME outreach through Corporate Mitras
- Capital position, priority sector lending and financial inclusion remain among the strongest in the public sector banking space
- Technology, prudential risk management and customer-centric innovation position Canara Bank for sustained FY27 growth
Net profit rose 2.19% to ₹4,856 crore, while operating profit increased to ₹8,636 crore. Fee income grew 5.35% to ₹2,342 crore, reflecting steady improvement in core operating performance.
Addressing a virtual post-results press conference, Brajesh Kumar Singh, Managing Director & CEO, Canara Bank, expressed confidence that the bank would witness broad-based business growth across all sectors during FY27.
“Canara Bank expects all-round business growth from all the sectors during FY27. Our diversified portfolio, strong customer franchise and continued focus on retail, agriculture, MSME and corporate segments position us well to sustain this momentum,” Singh said.
Retail banking continued to be the principal growth engine, with the retail loan portfolio surging 35.88%, led by housing loans growing 17.85% and vehicle loans rising 26.34%. The bank’s Retail, Agriculture and MSME (RAM) credit expanded 21.20%, highlighting strong credit demand across priority sectors.
Asset quality improved further, with the Gross NPA ratio declining to 1.57% from 2.69% a year earlier, while the Net NPA ratio fell to just 0.36%, among the lowest in the banking sector. The Provision Coverage Ratio improved to 94.76%, while credit cost declined to 0.49% and the slippage ratio improved to 0.60%, underscoring prudent risk management.
Responding to a question on the role of Artificial Intelligence in expanding banking services, particularly in rural and semi-urban India, Singh said technology has become central to the bank’s customer engagement strategy.
“Canara Bank uses Artificial Intelligence and Machine Learning across customer service platforms, including cyber fraud detection, enabling faster, safer and more personalised banking services while strengthening customer protection,” he said.
On expanding credit access for small businesses, Singh said the bank would continue leveraging its network of accredited Business Correspondents, popularly known as ‘Corporate Mitras’, to deepen financial inclusion.
“We already utilise accredited Business Correspondents across various sectors and will consider expanding their role further to stimulate MSME growth and improve last-mile banking outreach,” he said.
The bank also maintained a strong capital base, with its Capital Adequacy Ratio (CRAR) at 17.17%, providing ample headroom to support future credit growth.
Canara Bank continued to exceed regulatory benchmarks across priority-sector lending. Agricultural credit reached 21.41% of Adjusted Net Bank Credit (ANBC) against the mandated 18%, while overall priority-sector lending stood at 45.67%, comfortably above the regulatory norm of 40%. Lending to weaker sections, micro enterprises and small and marginal farmers also remained significantly above prescribed targets, reaffirming the bank’s commitment to inclusive growth.
With a nationwide network of 10,131 branches, 11,047 ATMs and recyclers, and four overseas branches, Canara Bank enters the remainder of FY27 with strong capital buffers, improving profitability, expanding digital capabilities and a balanced growth strategy that positions it to outperform in a competitive banking landscape.
