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.

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Government asks PSU banks to take steps to reduce employee stress and improve working conditions

Public sector banks have been urged by the government to take action to lessen employee stress and enhance working conditions. Numerous bank employees have complained about excessive work pressure, long hours, irrational business targets, and staff shortages, which has led to this decision. According to officials, the boards of all public sector banks (PSBs) have been instructed by the finance ministry to determine the primary reasons for employee stress and create detailed plans of action to address them. According to a government official, the banks have promised to implement the government's EASE 8.0 reforms program at the level of individual banks as well as the level of the entire policy.

The action follows many grievances from officers' groups and bank unions. Numerous workers claimed they are required to put up long hours, deal with increasing insurance and sales goals, and even be given non-banking tasks like election work. Numerous PSU Bank personnel have taken their own lives. The toxic work culture affects not just younger employees but even senior personnel. A senior manager of Bank of Baroda, Shri Iswar Chand Jha, recently took his own life. An AEO at Canara Bank allegedly committed suicide as a result of work-related stress. The passing of a Bank of Baroda chief manager was one piece of news that rocked the nation. The chief manager of Bank of Baroda in Baramati, Pune, committed suicide as a result of work-related stress.A few months ago, Central Bank Manager had committed Suicide. His Wife alleged that Bank Seniors were Mentally Harassing Him.

These are only a handful of incidents that demonstrate the poisonous workplace culture that exists in banks. Many more bank employees have taken their own lives. You can read about banker suicides here if you'd like. These days, if we discuss work pressure and a poisonous workplace, we hear about it every day. A Bank of Baroda branch manager refused to allow employees to take time off to care for his ailing mother. A 29-year-old girl just quit her job at Punjab National Bank because of the toxic work environment. On social media, her video had gained a lot of popularity. She claimed that she eventually quit her job because she was unhappy with it.A lot of banks deny leaves to staff and taking leave during month end or quarter end is considered a sin.

This shows that the working environment in public sector banks is now pathetic. The Government needs to immediately intervene and improve the work culture in banks otherwise banks will surely lose the talented staff.

Part of the EASE Reforms

The EASE (Enhanced Access and Service Excellence) programme is an ongoing reform initiative by the Department of Financial Services (DFS) to improve performance and efficiency in public sector banks. Under the EASE 8.0 and EASERise initiatives, the government is focusing on employee welfare, leadership development, and inclusive growth in PSBs.

At the recent PSB Manthan conclave, a special session was held on “Building an inclusive and future-ready workforce.” The session focused on diversity, equity, and skill development across various roles and genders in the banking system.

Banks Introduce New Well-Being Measures

To address stress and improve morale, several PSBs have started new initiatives such as Mentorship programmes for professional growth, Digital counselling platforms for mental well-being, Employee Health Index (EHI) surveys conducted every quarter. Out of 12 public sector banks, seven banks are now conducting EHI surveys regularly, and three banks are sharing the results with their boards to take quick action when needed, a senior bank executive said.

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Financial Results of PSU and Private Banks for Q2FY26

The public sector and private sector banks have released the financial results for Q2FY26. 

Public Sector Bank

Bank	Results
Bank of India(BoI)	Click Here
Punjab & Sind Bank	Click Here
Central Bank of India	Click Here
Union Bank of India	Click Here
Indian Overseas Bank	Click Here
Bank of Maharashtra	Click Here
State Bank of India(SBI)	Click Here
Punjab National Bank(PNB)	Click Here
Bank of Baroda(BoB)	Click Here
Canara Bank	Click Here
Indian Bank	Click Here
UCO Bank	Click Here

Private Banks

Bank	Results
IDBI Bank	Click Here
Kotak Mahindra Bank	Click Here
IDFC First Bank	Click Here
HDFC Bank	Click Here
ICICI Bank	Click Here
Indusind Bank	Click Here
Federal Bank	Click Here
Bandhan Bank	Click Here
Axis Bank	Click Here

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Punjab National Bank(PNB) Q2 net profit rises 14% YoY

On October 18, the state-owned lender Punjab National Bank said that its net profit for the second quarter of the current fiscal year increased by 14% year over year to Rs 4,904 crore. 

 On a year-over-year basis, operating profit grew by 5.5 and 6.5 percent for Q2FY26 and HY1FY26, respectively, to Rs 7,227 crore and Rs 14,308 crore. 

 For H1FY26, net interest income was Rs 21,047 crore, representing a 0.26 percent YoY increase. The total income for Q2FY26 was Rs 36,214 crore, and for H1FY26, it was Rs 73,445 crore, indicating YoY growths of 5.1 and 10.3 percent, respectively.

At Rs 31,872 crore, total interest income for the second quarter increased 6.7% over the previous year. On a year-over-year basis, total interest expenses for Q2FY26 were Rs 21,403 crore, while for H1FY26 they were Rs 42,789 crore, up 10.6 and 14.3 percent, respectively. 

 From 4.48 percent on September 30, 2024, to 3.45 percent on September 30, 2025, the GNPA ratio increased by 103 basis points on a year-over-year basis. From 0.46 percent on September 30, 2024, to 0.36 percent on September 30, 2025, the NNPA ratio increased by 10 basis points on a year-over-year basis. Gross Non-Performing Assets decreased from Rs 47,582 crore on September 30, 2024, to Rs 40,343 crore on September 30, 2025, a decrease of Rs 7,239 crore.

From Rs 4,674 crore on September 30, 2024, to Rs 4,026 crore on September 30, 2025, Net Non-Performing Assets decreased by Rs 648 crore. Current deposits rose to Rs 74,215 crore, representing a YoY gain of 9.0 percent, while savings deposits rose to Rs 5,08,964 crore, representing a YoY growth of 4.2 percent. 

 CASA Deposits grew by 4.7 percent year over year to Rs 5,83,178 crore. CASA As of September 30, 2025, the bank's share is 37.29 percent, which represents a 30 basis point increase from June 30, 2025. As of September 30, 2025, total term deposits have grown 14.7% year over year to Rs 10,33,902 crore.

Total Retail credit increased by 8.8 percent YoY to Rs 2,72,210 crore as on September 30, 2025. The bank grew under Retail Advances excluding IBPC recording a YoY growth of 18.1 percent.

Within Retail Advances excluding IBPC: Housing Loan grew by 12.9 percent YoY to Rs 1,24,099 crore, and Vehicle loan posted a growth of 30.9 percent YoY to reach Rs 29,512 crore.

Agriculture advances grew by 13.0 percent on YoY basis to Rs 1,83,987 crore and MSME advances increased YoY by 18.6 percent to Rs 1,79,220 crore.

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Serious Concern of Long Pending and Unresolved Staff Issues in this PSU Bank

According to sources, after officials filed complaints against Regional Head (RH) Dharmendra Rajoria, a number of events have taken place in Sambalpur, Odisha. Since it started in May 2025, the problem has prompted numerous investigations, discussions with upper management, and a growing level of participation from officers' associations. 

 The officers' complaints have not been addressed despite multiple representations, and some officers have been subjected to punitive action by being moved to far-off places. Events in the complaint case timeline A formal complaint alleging unprofessional behavior, workplace harassment, and unethical business activities by RH, Dharmendra Rajoria, was filed with the MDCEO in the final week of May 2025. A copy of the complaint was also sent to other relevant authorities.

In the first week of June, 2025, a departmental inquiry was conducted under the supervision of the Deputy Zonal Manager (Dy ZM) Bhubaneswar. The complainants later alleged that the inquiry report was biased, claiming their concerns were not reflected and that the findings favored RH Dharmendra Rajoria.

In the third week of June 2025, the officers sent another communication to all concerned officials, highlighting the alleged bias in the first inquiry and requesting an independent and impartial inquiry by the Central Office.

HR sent relieving orders via WhatsApp to a number of officers in the first week of July 2025, including Chief Managers, a manager, and the HR officer of Sambalpur. These orders instructed them to report to new postings by July 7, 2025. 

 On July 22, 2025, more than 50 officers participated in a second independent investigation and filed written accusations against RH Dharmendra Rajoria. According to reports, this investigation provided real data and facts about the circumstances.

No formal decision has been made even after the second inquiry has been ongoing for 75 days. According to Kanal on October 14, 2025, the All India Bank Officers' Association (AIBOA) also offered their support in a letter sent to the MD & CEO on October 9, 2025. 

 The officers continue to demand that transfer orders be revoked and that RH Dharmendra Rajoria and other suspected participants face proper disciplinary punishment, as the management continues to review the matter.

According to sources, this case appears to be a clear example of the adage "Justice delayed is justice denied." Current Events and Unresolved Issues A number of unaddressed issues within the organization are brought to light by the current case involving RH Dharmendra Rajoria. 

The matter is still open despite numerous investigations and repeated requests from cops. The officers are still looking for a just settlement and the required administrative measures.

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Central Bank of India’s Q2 profit rises 33%

In the second quarter (Q2FY26), the Central Bank of India (CBoI) reported a 33% year-over-year (y-o-y) increase in standalone net profit at ₹1,213 crore. 

The bottom line was bolstered by a sharp decline in total provisions, including those related to income tax, restructured accounts, and non-performing assets. In the previous year, the public sector bank posted a net profit of ₹913 crore. For FY26, its board authorized a second interim dividend of 2%, or ₹0.20 per equity share with a face value of ₹10.

The profitability in the reporting quarter came despite decline in both net interest income and other income.Net Interest Income (interest earned less interest expended) dipped about 4 per cent y-o-y to ₹3,283 crore in Q2FY26 (₹3,410 crore in Q2FY25).

Other income, comprising fee-based income, treasury income and other non-interest income, declined about 8.50 per cent y-o-y to ₹1,507 crore (₹1,647 crore).

Net Interest income was down 52 basis points from 3.41 per cent in Q2FY25 to 2.89 per cent in Q2FY26.Gross non-performing assets (NPA) position improved to 3.01 per cent of gross advances as on September-end 2025 against 4.59 per cent as on September-end 2024.

Net NPA position too improved to 0.48 per cent of net advances against 0.69 per cent.Loan loss provisions declined 58 per cent to ₹143 crore (₹340 crore).

Total provisions, including towards loan loss, restructured accounts and income tax, were 54 per cent lower at ₹573 crore (₹1,252 crore).

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UCO Bank Q2 Results: Net profit rises 2.82% YoY

 

UCO Bank reported a 2.82% year-on-year increase in net profit for the second quarter ended September 30, 2025, as per its official earnings disclosure. The bank's net profit stood at ₹620 crore in Q2 FY26 compared to ₹603 crore in the same period of the previous year.

Net interest income (NII) for the quarter rose by 10.08% year-on-year to ₹2,533 crore, up from ₹2,301 crore in the prior year, the bank said in a filing. The net interest margin (NIM) was reported at 2.90% globally and 3.08% domestically for the quarter ended September 30, 2025.

Asset quality showed improvement, with the gross non-performing assets (GNPA) ratio reducing to 2.56% as of September 30, 2025, from 3.18% a year earlier, marking an improvement of 62 basis points year-on-year.

The net NPA ratio also improved to 0.43% from 0.73% in the same period last year, reflecting a 30 basis points improvement. The provision coverage ratio stood at 96.99% as of the end of the quarter.

UCO Bank's total business grew by 13.23% year-on-year to ₹5,36,398 crore as of September 30, 2025, from ₹4,73,704 crore a year earlier. Total deposits increased by 10.85% year-on-year to ₹3,05,697 crore, while gross advances grew by 16.56% to ₹2,30,702 crore.

The Retail, Agriculture, and MSME (RAM) segment registered a year-on-year growth of 22.87%, reaching ₹1,32,946 crore as of September 30, 2025. Within this segment, retail advances grew by 25.40% year-on-year to ₹58,987 crore, agriculture advances increased by 17.28% to ₹31,650 crore, and MSME advances rose by 23.80% to ₹42,309 crore.

The bank's capital adequacy ratio (CRAR) stood at 17.89% as of September 30, 2025, with a Tier I capital ratio of 15.90%. The credit-to-deposit ratio improved to 75.47% from 71.77% a year earlier.

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Bank of India(BOI) Q2 results: Net profit up 7.62%

Due to lower lending costs, public sector lender Bank of India (BOI) announced a 7.62% year-over-year increase in net profit to ₹2,555 crore for the July–September 2025 quarter (Q2FY26) on Friday. 

The shares of the Mumbai-based lender closed at ₹123.30 per share on the BSE, a 1.67 percent decrease. In Q2FY26, its net interest income (NII) decreased by 1.24 percent to ₹5,912 crore, from ₹5,986 crore in Q2FY25, the same quarter that ended in September 2024. 

 Net interest margin (NIM) decreased from 2.81 percent in Q2FY26 to 2.41 percent in Q2FY26, a 40 basis point year-over-year (Y-o-Y) decrease.

The managing director and CEO of BOI, R Karnatak, stated that a decrease in provisions for bad loans was the reason for the improvement in net earnings. After the deposit repricing is finished in the second half, the NII ought to start to get better. 

Customers have already received the repo rate reductions. In Q2FY26, the bank's non-interest income—which includes treasury, fees, commissions, etc.—dropped by 12% year over year to ₹2,220 crore. The profit from treasury operations, such as the sale and revaluation of investments, fell from ₹730 crore in Q2FY26 to ₹314 crore in Q2FY26, a 57% decline. 

 Following the results, Karnatak stated in a virtual media exchange that the bank did not experience much treasury income in the third quarter due to the current state of the market.

In Q2FY26, the credit costs, also known as provisions for non-performing assets (NPAs), dropped significantly to ₹472 crore from ₹1,427 crore in the previous year. In Q2FY26, advances increased 14.03 percent year over year to ₹7.09 trillion. 

 In the September quarter of FY26, advances to MSME, retail, and agricultural climbed 17.02 percent year over year to ₹3.47 trillion. According to Karnatak, the second half of the fiscal year is anticipated to see a strong credit offtake, including over the holiday season. A credit pipeline of ₹70,000 crore in corporate, retail, and agricultural loans has been approved. 

 At ₹8.53 trillion, total deposits grew 10.08 percent year over year. At the end of September 2025, the percentage of low-cost deposits, or current accounts and savings accounts (CASA), fell from 41% to 40%.

Gross non-performing assets (NPAs) decreased from 4.41 percent in September 2024 to 2.54 percent in September 2025, indicating an improvement in the bank's asset quality. Additionally, net non-performing assets (NPAs) decreased from 0.94 percent in September 2024 to 0.65 percent in September 2025.

 In September 2025, the provision coverage ratio (PCR), which takes into account written-off accounts, increased from 92.22 percent to 93.39 percent. At the end of September 2025, the bank's capital adequacy was 16.69%, with Common Equity Tier-1 capital at 14.49%.

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