Canara Bank Q2 Results: Net Profit Rises 9% To ₹5,175 Crore, PSU Bank Stock Jumps 4% As Bad Loans Decline
Mumbai: Shares of public sector lender Canara Bank surged nearly 4 per cent on Wednesday after the bank reported improved financial performance for the second quarter of FY27. Strong growth in net interest income, lower bad loans and reduced provisions supported the bank's September quarter earnings. The PSU banking stock climbed to Rs 125.17 following the announcement, even as it remained under…
Shares of public sector bank Canara Bank rose nearly 4% on Wednesday following the release of its Q2 results for the fiscal year 2027. The lender's performance was boosted by higher net interest income, lower non-performing assets and reduced provisions, which together drove a 9% increase in net profit to ₹5,175 crore.
The PSU bank's net interest income surged 20.4% year-on-year, reaching ₹11,004 crore, while its gross non-performing asset ratio fell to 1.33% from 1.57% in the previous quarter. Canara Bank's asset quality also improved, with gross bad loans declining to ₹18,298.95 crore from ₹20,354.34 crore, and net NPAs dropping to ₹4,053.19 crore from ₹4,652.95 crore.
Provisions shrank to ₹3,583 crore from ₹3,780 crore in the prior quarter, further bolstering profitability. However, new slippages increased slightly to ₹1,844 crore from ₹1,781 crore in the same period. The bank's loan portfolio grew 19.3% year-on-year to ₹13.73 lakh crore, while loan growth hit 6.2% sequentially.
Despite the positive earnings outlook, Canara Bank shares traded at ₹125.17 following the announcement, still lagging behind by around 19% for the year 2026. The stock's underperformance highlights the disconnect between improving quarterly fundamentals and the company's broader market performance.
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Also reported by 2 other outlets
- Canara Bank Net Profit Rises 8.40% To ₹5,175 Crore In Q2 FY27 freepressjournal.in
- BHEL Q2FY27 results: Net profit jumps over two-fold to ₹821 crore business-standard.com
