Canara Bank’s Q2 FY26 earnings call highlighted strong year-on-year growth. Global business grew by 13.55% to ₹26,78,963 crores. Deposits increased by 13.4% to ₹15.27 lakh crore, and advances grew by 13.74% to ₹11.51 lakh crore. Operating profit rose by 12.20% to ₹8,588 crore. Net profit increased by 18.93% to ₹4,774 crore. The bank aims for a RAM sector contribution of 60% and corporate sector at 40%.
Key Financial Highlights
Canara Bank reported robust financial results during its Q2 FY26 earnings conference call, showcasing significant growth across various key metrics:
- Global business grew by 13.55% year-on-year, reaching ₹26,78,963 crores.
- Global Deposits increased by 13.4% to ₹15.27 lakh crore.
- Global Advances rose by 13.74% to ₹11.51 lakh crore.
- Operating Profit saw a 12.20% increase, totaling ₹8,588 crore, an all-time high.
- Net Profit grew by 18.93%, reaching ₹4,774 crore.
- Return on Assets increased by 7 basis points to 1.12%.
- PCR improved by 270 basis points to 93.59%.
- Gross NPA decreased to 2.35%.
- Net NPA decreased to 0.54%.
Segment Performance
The bank experienced notable growth in specific sectors:
- RAM credit led the overall business growth, increasing by almost 17% to ₹6.71 lakh crore.
- Retail credit grew by 29.11%, reaching ₹2.51 lakh crore.
- Housing Loans increased by 15.25% to ₹1.14 lakh crore.
- Vehicle Loans grew by 25.58% to ₹23,367 crore.
- MSME showed a growth of almost 13%, with year-on-year growth at 12.70%, totaling ₹1.54 lakh crore.
Strategic Outlook and Initiatives
Canara Bank outlined its strategic priorities and initiatives for future growth:
- The bank aims to achieve a CASA ratio of 32%.
- The strategic goal is to have the RAM sector contribute 60% and the corporate sector contribute 40% to the bank’s portfolio.
- Focus on strengthening the bank’s subsidiary, Canara Bank Securities Limited, including potential capital infusion.
Guidance and Expectations
The management expressed optimism about maintaining profitability and growth, anticipating that Net Profits may exceed ₹20,000 crores for the year. The bank also discussed its approach to new ECL guidelines, projecting a Credit Cost within less than 1%.
Source: BSE