Canara Bank Q2 net profit rises 19%, asset quality improves

 Canara Bank reported a net profit of Rs 4,774 crore for the second quarter of the financial year 2026. This marks a 19 percent year-on-year (YoY) increase from the Rs 4,014 crore net profit reported in the same period last year.

The PSU lender’s net interest income (NII) however declined 2 percent YoY to Rs 9,141.19 crore during the quarter under review. Asset quality improved, with net NPA ratio reducing to 0.54 percent during Q2 FY26 from 0.99 percent in Q2 FY25. Gross NPA ratio fell to 2.35 percent during the September quarter of the current financial year, from 3.73 percent during the corresponding quarter of the previous financial year.

Canara Bank’s net profit margin improved to 12.37 percent in Q2 FY26, from 11.56 percent in Q2 FY25. The margin however declined sequentially from 12.48 percent recorded in the first quarter of FY26 (April-June).

Return on assets (ROA) increased to 1.12 percent, while credit costs decreased to 0.68 percent. Total provisions increased nearly 5 percent YoY to Rs 3,814 crore. Slippage ratio stood at 0.76 percent improved by 24 bps.