- Other income for the quarter grows to ₹7,060 crore from ₹5,318 crore last year.
- lt plans to list two subsidiaries Canara Robeco Mutual Fund and Canara HSBC Life Insurance in the next two to three months
NE BUSINESS BUREAU
BENGALURU, JULY 24
State-owned Canara Bank on Thursday posted a 22 per cent year-on-year increase in first quarter (FY26) net profit at ₹4,752 crore, up from ₹3,905 crore in the corresponding quarter a year ago. The bank stated that a significant increase in non-interest income drove the growth.
The Bengaluru-based bank had earned a net profit of ₹3,905 crore in the same quarter of the previous fiscal year.
The total income rose to ₹38,063 crore during the June quarter of fiscal year 2025-26, from ₹34,020 crore in the same quarter of FY25, Canara Bank said in a regulatory filing.
Interest earned by the bank improved to ₹31,003 crore, as compared to ₹28,701 crore in the June quarter FY25.
Bank’s Q1 net interest income fell 1.7% to ₹9,009 crore from ₹9,166 crore a year ago, however, other income jumped 32.7% to ₹7,060.48 crore from ₹5,318.88 crore in the same period last year.
In the quarter, the bank’s operating profit stood at ₹ 8,554 crore, up 12.32%. Bank’s global business stood at ₹25,63,984 crore, a 10.98% growth YoY. Global deposits at ₹ 14,67,655 crore grew by 9.92% annually, while gross advances at ₹10,96,329 crore increased by 12.42%. Domestic deposit at ₹13,38,742 crore grew at 8.74%.
The quarter saw its RAM credit growing by 14.90% YoY. Retail credit grew by 33.92% with Housing loan growth at 13.92% and vehicle loan at 22.09%. Fee-based income stood at ₹ 2,223 crore, a 16.39% growth. Gross NPA ratio stood at 2.69%, improved by 145 bps and Net NPA ratio at 0.63%, improved by 61 bps.
On asset quality, the bank said, its gross non-performing assets (GNPA) ratio improved to 2.69% as at June 2025, down from 2.94% as at March 2025, and 4.14% as at June 2024. Net non-performing assets (NNPA) ratio improved to 0.63% as at June 2025, down from 0.70% as at March 2025, and 1.24% as at June 2024.
Speaking about raising of funds, K Satyanarayana Raju, MD & CEO, Canara Bank, said, “The bank’s board has approved to raise ₹3,500 crore via additional Tier-I bonds and ₹6,000 crore via Tier-II bonds in FY26. We will tap the market when pricing becomes favourable.’‘
“We are awaiting SEBI nod for listing our subsidiaries Canara Robeco Mutual Fund and Canara HSBC Life Insurance. These firms will be listed on BSE and NSE, in the next two to three months,” he added.
