Canara Bank Profit Rises 8.4% as Bond Losses Limit Gains
Higher core lending income and improved asset quality lifted quarterly profit, while mark-to-market losses amid rising bond yields weighed on earnings.
Key takeaways
- Second-quarter net profit rose 8.4% year on year to ₹5,175 crore.
- Net interest income increased 20.4% to ₹11,005 crore.
- The gross non-performing asset ratio fell to 1.3% at September-end.
- Global deposits grew 13.1% year on year to ₹17 lakh crore.
Canara Bank’s net profit rose 8.4% year on year to ₹5,175 crore in the second quarter of FY27. Improvement in asset quality and growth in core income supported the increase, while mark-to-market losses amid a surge in bond yields weighed on earnings.
Net interest income, the bank’s core earnings from lending, climbed 20.4% to ₹11,005 crore. Net interest margin improved to 2.6% from 2.5% in the preceding quarter. Total income increased 6% to ₹40,931 crore.
Non-interest income fell 18% to ₹5,772 crore. Total treasury income was ₹499 crore, down 68.5% from a year earlier. Operating profit rose 2% to ₹8,758 crore.
The gross non-performing asset ratio improved to 1.3% at the end of September, from 1.6% three months earlier and 2.4% a year earlier. Provisions declined to ₹1,782 crore from ₹2,354 crore in the year-ago quarter.
Global deposits increased 13.1% year on year to ₹17 lakh crore at September-end. The bank attributed the growth to $5.8 billion in inflows into FCNR-B accounts through a dedicated Reserve Bank of India window, equivalent to ₹53,000 crore.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
