State-owned Canara Bank on Monday reported a 2.19 per cent year-on-year (y-o-y) increase in standalone net profit to ?4,856 crore for the first quarter ended June 30, 2026, supported by double-digit credit growth and a steady improvement in asset quality. Net interest income (NII) grew 13.39 per cent y-o-y to ?10,215 crore, while total income rose 4.26 per cent to ?39,684 crore.

The lender’s global business expanded 14.37 per cent y-o-y to ?29,05,066 crore during the quarter. Global advances jumped 17.97 per cent to ?12,93,381 crore, driven primarily by retail, agriculture, and MSME (RAM) credit, which surged 21.20 per cent.

Within retail, housing loans grew 17.85 per cent to ?1,29,036 crore, and vehicle loans rose 26.34 per cent. Total global deposits increased 11.63 per cent y-o-y to ?16,11,685 crore, with domestic deposits standing at ?14,73,447 crore. Fee income for the quarter improved 5.35 per cent to ?2,342 crore, while operating profit rose marginally by 0.96 per cent to ?8,636 crore.

Asset quality
On a sequential basis, asset quality indicators strengthened further across key metrics. Gross non-performing assets (GNPA) improved by 27 basis points quarter-on-quarter to 1.57 per cent as of June 2026, down from 1.84 per cent in March 2026 and 2.69 per cent in June 2025. Net NPA fell by 7 basis points sequentially to 0.36 per cent from 0.43 per cent in the previous quarter and 0.63 per cent a year ago. The provision coverage ratio (PCR) improved to 94.76 per cent from 94.21 per cent as of March 2026.

The bank maintained a comfortable capital position with its capital to risk-weighted assets ratio (CRAR) standing at 17.17 per cent, of which common equity tier-1 (CET-1) was 12.91 per cent. Slippages remained low at 0.60 per cent, while credit costs improved by 23 basis points year-on-year to 0.49 per cent.

Management guided for 11-12 per cent growth in global advances and 9-10 per cent growth in global deposits for FY27, while expressing confidence that the bank could exceed its loan growth target based on recent momentum. It expects net interest margin (NIM) to remain in the 2.5-2.6 per cent range, with GNPA at around 1.5 per cent and net NPA at about 0.4 per cent by the end of the fiscal year.