
Shares of Canara Bank Ltd. jumped nearly 4 per cent to Rs 112.50 on July 24 after the state-owned lender reported strong Q1 results for the financial year 2025-26. The bank’s consolidated net profit surged 21.7 per cent year-on-year to Rs 4,752 crore, supported by improved asset quality and a sharp rise in other income.
Canara Bank’s gross non-performing assets (GNPA) improved to 2.69 per cent in the quarter ended June 30, down from 2.94 per cent in the previous quarter. Net NPA also declined to 0.63 per cent from 0.70 per cent sequentially, signaling healthier loan book quality. Fresh slippages moderated to Rs 2,129 crore compared to Rs 2,655 crore in the March quarter, while recoveries from written-off accounts rose to Rs 1,414 crore.
Despite a 1.7 per cent decline in Net Interest Income (NII) to Rs 9,009 crore, the lender saw a significant 33 per cent jump in other income to Rs 7,060 crore. Provisions for NPAs dropped sharply to Rs 1,845 crore from Rs 2,847 crore, helping overall profitability. Provisions for tax and contingencies were higher at Rs 2,351 crore compared to Rs 1,831 crore last quarter.
On the business front, Canara Bank’s global advances grew 12.4 per cent year-on-year to Rs 10.96 lakh crore, while deposits rose 10 per cent to Rs 14.67 lakh crore, indicating steady growth in lending and deposit mobilisation.
The stock rallied in response to the better-than-expected asset quality numbers and healthy profit growth. Canara Bank shares have gained 11.6 per cent so far in 2025, reflecting investor confidence in the bank’s improving fundamentals.
With lower slippages, robust recoveries, and steady credit growth, Canara Bank is showing signs of a strong turnaround among PSU lenders. The bank’s ability to control asset quality stress and improve core income amid rising provisions will be key to sustaining momentum going forward.
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