Canara Bank reports a 22% increase in Q1 net profit
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.
Canara Bank MD & CEO K Satyanarayana Raju, during a media briefing, 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,'' he said.
Mr. Raju further said, the bank was planning to list two of its subsidiaries: Canara Robeco Mutual Fund and Canara HSBC Life Insurance, during the current quarter. ``We are waiting for SEBI approval for both the IPOs. These firms will be listed on BSE and NSE, in the next two to three months,'' he added.
On digital transformation, he said the bank has made significant progress in this regard and several of its services were already digitalised.
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