Canara Bank Q2 Results: Net Profit Jumps Nearly 19% YoY To Rs 4,774 Cr; Asset Quality Improves Sharply

Canara Bank's financial results for the September 2025 quarter were released on Thursday, with the bank's net interest income increasing by 1.47% quarter on quarter (QoQ) but dropping by 1.87% year on year (YoY). Total interest expenses climbed 9.86% YoY to Rs 22,403 crore, while total interest income grew 6.07% YoY to Rs 31,544 crore.

Total expenditure was Rs 30,010 crore, up 10.87% YoY, while total income was Rs 38,598 crore, up 1.41% QoQ and 11.17% YoY. Operating profit increased by 12.20% YoY to Rs 8,588 crore, while provisions jumped by 4.78% YoY to Rs 3,814 crore.

Despite modest margin headwinds, the bank's net profit rose to Rs 4,774 crore, a robust 18.93% YoY gain that highlighted steady profitability and operational effectiveness.
Driven by robust business growth across categories, Canara Bank produced an outstanding operational performance in the September 2025 quarter.

The bank's gross business increased by 13.55% YoY and 4.48% QoQ to Rs 26,78,963 crore. Within this, overseas gross business shot up by 21.66% YoY to Rs 2,02,536 crore, while domestic gross business climbed by 4.45% QoQ and 12.93% YoY to Rs 24,76,427 crore.

In terms of lending, both domestic advances at Rs 10,81,428 crore and offshore advances at Rs 69,613 crore, which witnessed a noteworthy 20.34% YoY rise, contributed to the growth of global gross advances to Rs 11,51,041 crore, up 4.99% QoQ and 13.74% YoY.

With domestic deposits at Rs 13,94,999 crore and overseas deposits at Rs 1,32,923 crore, global deposits totalled Rs 15,27,922 crore, gaining 4.11% QoQ and 13.40% YoY. A balanced credit growth trajectory in accordance with rising deposits is shown by the Global Credit-Deposit (C-D) Ratio, which rose slightly to 75.33%.

In the September 2025 quarter, Canara Bank's domestic deposit base grew steadily thanks to solid performance across multiple key areas. The total domestic deposits increased by 12.62% YoY and 4.20% QoQ to Rs 13,94,999 crore. In this, current deposits jumped dramatically by 40.48% QoQ and 62.84% YoY to Rs 75,920 crore, while savings deposits went up by 3.07% QoQ and 3.37% YoY to Rs 3,52,195 crore.

The bank's low-cost deposit base was strengthened by this strong spike in current accounts, as CASA Deposits (Current Account and Savings Account) surged to Rs 4,28,115 crore, representing 8.18% QoQ and 10.53% YoY growth.

Term deposits grew by 2.53% QoQ and 13.57% YoY to reach Rs 9,66,884 crore, with Rs 5,63,683 crore coming from retail term deposits. Global deposits, on the other hand, increased by 13.40% YoY and 4.11% QoQ to Rs 15,27,922 crore.

As a result of better recoveries and careful risk management, Canara Bank's asset quality continued to improve in the September 2025 quarter. The Gross NPA ratio dropped dramatically to 2.35% from 3.73% in September 2024 as the Gross NPA fell to Rs 27,040 crore from Rs 37,733 crore a year earlier. In a similar vein, the Net NPA plummeted to Rs 6,113 crore, and the Net NPA ratio improved to 0.54% from 0.99% the previous year.

The bank's Provision Coverage Ratio (PCR) increased to 93.59%, demonstrating strong provisioning buffers; the Slippage Ratio decreased from 0.25% in the same quarter last year to 0.19%; and the Credit Cost (annualized) improved to 0.68%, indicating improved credit underwriting and lower slippages.

As of September 30, 2025, the bank has 9948 branches, including 7405 ATMs, 3165 rural branches, 2954 semi-urban branches, 1957 urban branches, and 1872 metro branches.