Mumbai – Public sector lender Canara Bank reported a robust 21.7% year-on-year (YoY) increase in its net profit for the first quarter of FY 2025-26 (Q1 FY26), reaching ₹4,752 crore, compared to ₹3,905 crore in the same quarter last year (Q1 FY25).
The bank also posted a strong performance in its other income, which rose to ₹7,060 crore from ₹5,318 crore in the year-ago period, as per its stock exchange filing.
Canara Bank’s global advances (total loans disbursed) grew by 12.4% YoY to ₹10.96 lakh crore, while total deposits rose by 10% to ₹14.67 lakh crore.
However, net interest income (NII) — the difference between interest earned and interest paid — saw a marginal decline. NII for the April-June quarter stood at ₹9,009 crore, down 1.7% from ₹9,166 crore in Q1 FY25.
The bank’s asset quality showed notable improvement. Gross non-performing assets (NPAs) declined to 2.69%, down from 2.94% in the previous quarter. Net NPAs also reduced to 0.63% from 0.7% in the last quarter, reflecting better management of bad loans.
Provisions for tax and contingencies rose to ₹2,351 crore from ₹1,831 crore in the previous quarter. However, provisions for NPAs dropped significantly to ₹1,845 crore, compared to ₹2,847 crore in the preceding quarter, indicating improved recoveries and lower slippages.
New slippages — or fresh additions to NPAs — fell to ₹2,129 crore in the June quarter, down from ₹2,655 crore in the March quarter. Recoveries from written-off accounts amounted to ₹1,414 crore during the quarter.
Following the earnings announcement, Canara Bank’s stock jumped 4% to ₹112.5 during intra-day trading.
With inputs from IANS