State-owned Canara Bank on Wednesday reported an 8 per cent rise in net profit to ₹5,175 crore for the September quarter, as improving asset quality and stronger interest income lifted earnings. The bank's shares jumped nearly 5 per cent to a high of ₹126.47 on the NSE after the results.
Profit driven by interest income
Net profit rose to ₹5,175 crore in the second quarter from ₹4,774 crore in the same quarter of the previous financial year, according to the bank's regulatory filing. Total income increased to ₹40,931 crore from ₹38,598 crore, while interest income improved to ₹35,159 crore from ₹31,544 crore.
Net interest income — the difference between interest earned and interest paid — jumped 20 per cent to ₹11,005 crore from ₹9,141 crore a year ago. Operating profit rose to ₹8,758 crore from ₹8,588 crore.
Bad loans keep falling
Asset quality continued to improve. Gross non-performing assets moderated to 1.33 per cent of gross advances at the end of September 2026, from 2.35 per cent a year earlier, while net NPAs fell to 0.30 per cent from 0.54 per cent. As a result, the provision for bad loans declined to ₹1,339 crore from ₹1,504 crore in the second quarter of last financial year.
The results come as investors assess the impact of the RBI's tighter monetary stance on banks, with the central bank hiking the repo rate to 5.50 per cent last week and moving to "calibrated tightening."
Sources: Canara Bank reports 8% rise in Q2 profit, reaches ₹5,175 crore — ETBFSI/PTI | Canara Bank Q2 results: Profit rises 8% to ₹5,175 cr — The Hindu BusinessLine | Canara Bank, IRCON, Tata Elxsi among top midday movers — ET Now
Profit driven by interest income
Net profit rose to ₹5,175 crore in the second quarter from ₹4,774 crore in the same quarter of the previous financial year, according to the bank's regulatory filing. Total income increased to ₹40,931 crore from ₹38,598 crore, while interest income improved to ₹35,159 crore from ₹31,544 crore.
Net interest income — the difference between interest earned and interest paid — jumped 20 per cent to ₹11,005 crore from ₹9,141 crore a year ago. Operating profit rose to ₹8,758 crore from ₹8,588 crore.
Bad loans keep falling
Asset quality continued to improve. Gross non-performing assets moderated to 1.33 per cent of gross advances at the end of September 2026, from 2.35 per cent a year earlier, while net NPAs fell to 0.30 per cent from 0.54 per cent. As a result, the provision for bad loans declined to ₹1,339 crore from ₹1,504 crore in the second quarter of last financial year.
The results come as investors assess the impact of the RBI's tighter monetary stance on banks, with the central bank hiking the repo rate to 5.50 per cent last week and moving to "calibrated tightening."
Sources: Canara Bank reports 8% rise in Q2 profit, reaches ₹5,175 crore — ETBFSI/PTI | Canara Bank Q2 results: Profit rises 8% to ₹5,175 cr — The Hindu BusinessLine | Canara Bank, IRCON, Tata Elxsi among top midday movers — ET Now
