Canara Bank net profit up 21.6% to Rs 4,572cr in Q1 | Bengaluru News
Bengaluru: Canara Bank delivered a strong performance in the April-June quarter of FY 2025-26, with net profit rising 21.6% year-on-year to Rs 4,752 crore. This growth was driven by robust advances, higher fee-based income, and improved asset quality.The bank’s global business grew 10.9% YoY to Rs 25.6 lakh crore. Global deposits increased 9.9% to Rs 14.6 lakh crore, while gross advances rose 12.4% to Rs 10.9 lakh crore. Retail credit saw significant growth of 33.9%, led by double-digit increases in both housing and vehicle loans. In an interview with TOI, Canara Bank MD & CEO K Satyanarayana Raju said the bank consistently exceeded its guidance across parameters for the last eight quarters.“We are on a steady upward trajectory. Even in a traditionally slow June quarter, we delivered 12.4% credit growth, led by RAM (Retail, Agriculture and MSME) sectors. We intend to maintain this momentum,” he said. Raju credited the improved NPA performance to long-term investments in credit underwriting and technology. “This success is the result of sustained efforts over two years and three months, including overhauling underwriting processes, centralising loan approvals, and enhancing monitoring through data analytics. Slippages reduced from Rs 3,800 crore to Rs 2,100 crore per quarter,” he added, noting that fresh corporate slippages are now “almost zero.”Canara Bank operates 9,861 branches and 7,907 ATMs across India and overseas, with international offices in London, New York, Dubai, and GIFT City. The bank continues to expand its physical presence. “Public sector banks, including ours, recognise the importance of branches for retail business sourcing and low-cost deposits. We have been opening over 250 branches annually for two years,” Raju said. This year, the bank plans to open 260 new branches, bringing the total to over 10,000. “We use AI and data analytics to target high-potential semi-urban and rural areas,” he explained. New branches are also planned in Ladakh, where the bank acquired land and is setting up a regional office.The bank is upgrading its ATM network by replacing old machines with cash recyclers to enable 24×7 cash deposits. “Our goal is 4,000 recyclers this year; 2,500 are already installed,” Raju noted. While UPI usage has surpassed ATM transactions among younger customers, senior citizens and middle-aged users still prefer physical banking. “We are aligning our ATM upgrades with these behavioural shifts. Cash recyclers will also allow shopkeepers to deposit earnings after hours,” he added.
