Canara Bank Q1 Profit Rises 2% To ₹4,856 Crore, Bad Loans And Provisions Decline
Canara Bank’s Q1 net profit rose 2 percent to Rs 4,856 crore as income increased and bad loans declined, while Return on Assets slipped to 1.04 percent.
Canara Bank’s Q1 net profit rose 2 percent to Rs 4,856 crore. | Representative Image
New Delhi: State-owned Canara Bank reported a marginal 2 percent rise in net profit to Rs 4,856 crore for the first quarter ended June 2026.
The Bengaluru-based lender had posted a net profit of Rs 4,752 crore in the corresponding quarter of the previous financial year, according to its regulatory filing.
Income Growth
The bank’s total income increased to Rs 39,684 crore during the June quarter from Rs 38,063 crore in the same period of FY26.
Interest earned rose to Rs 32,957 crore from Rs 31,003 crore in the year-ago quarter. This reflected steady growth in the bank’s core lending operations.
Operating profit increased slightly to Rs 8,636 crore during the quarter, compared with Rs 8,554 crore in the corresponding period last year.
Asset Quality
Canara Bank recorded a strong improvement in asset quality during the quarter. Its gross non-performing assets (NPAs) declined to 1.57 percent of gross advances at the end of June 2026.
Gross NPAs stood at 2.69 percent in the same quarter of the previous year.
Net NPAs also declined to 0.36 percent from 0.63 percent a year earlier. The fall in both gross and net bad-loan ratios indicated better loan recoveries and control over fresh stressed assets.
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Lower Provisions
Provisions for bad loans declined to Rs 1,399 crore during the first quarter from Rs 1,845 crore in the year-ago period.
The Provision Coverage Ratio improved to 94.76 percent from 93.17 percent at the end of the corresponding quarter last year. A higher ratio indicates that the bank has set aside greater coverage against stressed loans.
Return Weakens
Despite the improvement in profit and asset quality, the bank’s Return on Assets declined to 1.04 percent in June 2026 from 1.14 percent in June 2025.
The capital adequacy ratio, however, strengthened to 17.17 percent from 16.52 percent in the same quarter of FY26.
This showed that Canara Bank maintained a stronger capital position to support lending and absorb possible financial risks.
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