Ahmedabad, July 27: State-owned Canara Bank reported a steady financial performance for the first quarter of FY2026-27, driven by healthy credit expansion, strong retail lending and continued improvement in asset quality. The bank’s global business grew 14.37% year-on-year to ₹29.05 lakh crore, while net profit increased 2.19% to ₹4,856 crore for the quarter ended June 30, 2026.
Global deposits rose 11.63% year-on-year to ₹16.12 lakh crore, while global advances registered a robust 17.97% growth to ₹12.93 lakh crore, reflecting sustained credit demand across business segments. Domestic deposits stood at ₹14.73 lakh crore, whereas domestic advances climbed 16.95% to ₹12.07 lakh crore during the quarter.
The bank continued to witness strong momentum in its Retail, Agriculture and MSME (RAM) portfolio. RAM credit expanded 21.20% year-on-year, while retail lending grew an impressive 35.88%. Housing loans increased 17.85% and vehicle loans recorded a healthy 26.34% growth, underlining sustained demand in the retail credit segment.
Operationally, Canara Bank reported fee income of ₹2,342 crore, up 5.35% year-on-year, while operating profit stood at ₹8,636 crore. Earnings per share also improved by 2.19%, reflecting stable profitability despite a challenging operating environment.
The lender further strengthened its balance sheet with notable improvement in asset quality. Gross Non-Performing Assets (GNPA) declined to 1.57%, while Net NPA improved to 0.36%. Provision Coverage Ratio (PCR) increased to 94.76%, and credit cost reduced to 0.49%, indicating prudent risk management and healthier recoveries.
Capital adequacy remained comfortable, with the Capital to Risk-weighted Assets Ratio (CRAR) standing at 17.17% as of June 30, 2026, providing adequate capital buffers to support future business expansion.
The bank also exceeded regulatory targets across priority sector lending. Priority sector advances accounted for 45.67% of Adjusted Net Bank Credit (ANBC), while agricultural credit stood at 21.41%, both surpassing the prescribed norms. Lending to small and marginal farmers, weaker sections, micro enterprises and non-corporate farmers also remained above regulatory benchmarks.
As of June 30, 2026, Canara Bank operated a nationwide network of 10,131 branches and 11,047 ATMs and recyclers, supported by four overseas branches located in London, New York, Dubai and GIFT City, reinforcing its domestic and international presence.