Canara Bank Reports Robust Q2 Growth with 11.5 Percent Profit Rise and Gains in Retail Lending and Asset Quality

Canara Bank Reports Robust Q2 Growth with 11.5 Percent Profit Rise and Gains in Retail Lending and Asset Quality

Canara Bank announced strong fiscal second-quarter earnings for FY25, posting a net profit of ₹4,100.32 crore, marking an 11.5% increase from ₹3,677.39 crore in the same quarter last year. Total income for the quarter reached ₹38,006.05 crore, reflecting a 12.1% growth over ₹33,891.21 crore in the corresponding period of FY24. On a standalone basis, Canara Bank recorded a profit of ₹4,014.53 crore, up 11.3% from ₹3,606.14 crore in Q2 FY24, while net interest income (NII) grew by 4.6% year-on-year (YoY) to ₹9,315.3 crore from ₹8,903 crore.

The bank achieved a 9.42% YoY growth in its global business, reaching ₹2,359,344 crore by the end of the quarter. Global deposits rose 9.34% YoY to ₹1,347,347 crore, while global gross advances increased by 9.53% YoY to ₹1,011,997 crore. Domestic deposits reached ₹1,238,713 crore, up 8.34% YoY, and domestic advances saw an 8.64% YoY growth to ₹954,149 crore.

Canara Bank’s retail lending portfolio demonstrated notable growth, increasing by 31.27% YoY to ₹194,556 crore as of September 2024. Its housing loan segment rose by 12.29% YoY to ₹99,452 crore, underlining the bank's focus on retail lending expansion. Asset quality also improved, with the Gross Non-Performing Assets (GNPA) ratio declining to 3.73% from 4.76% YoY, and the Net NPA (NNPA) ratio dropping to 0.99% from 1.41% in the same period last year. The bank’s Provision Coverage Ratio (PCR) improved to 90.89%, up from 88.73% as of September 2023, further reinforcing its financial stability.

As of September 30, Canara Bank operates 9,658 branches, comprising 3,115 in rural areas, 2,778 in semi-urban, 1,918 in urban, and 1,847 in metropolitan regions, with an extensive network of 9,881 ATMs. Additionally, Canara Bank has expanded its presence internationally with branches in London, New York, Dubai, and at the GIFT City International Banking Unit in India.