Canara Bank net profit up 8.4%, treasury losses weigh
Canara Bank experienced an 8.4% year-on-year increase in net profit, reaching ₹5,175 crore for Q2 FY27. The bank's improvement in asset quality contributed to this profit growth, alongside core income expansion. However, mark-to-market losses from rising bond yields limited higher earnings outcomes. Its gross non-performing assets ratio also improved, declining to 1.3% from both the previous…
Canara Bank reported an 8.4% increase in net profit to ₹5,175 crore in the second quarter of FY27, aided by better asset quality and growth in core income. The profit margin in the current quarter was ₹4,774 crore, compared to ₹5,175 crore in the previous year. However, mark-to-market losses due to rising bond yields hampered the earnings.
The bank's net interest margin expanded to 2.6% from 2.5% in the prior quarter. Core lending earnings surged 20.4% to ₹11,005 crore, while non-interest income declined by 18% to ₹5,772 crore due to a steep drop in treasury losses. Total income rose 6% year-on-year to ₹40,931 crore, with a staggering ₹499 crore in treasury income, marking a 68.5% year-on-year fall.
The bank's operating profit grew by 2% to ₹8,758 crore. Gross non-performing assets (GNPA) ratio improved to 1.3% by the end of September, down from 1.6% and 2.4% a year ago, leading to lower provisions of ₹1,782 crore against ₹2,354 crore. Canara Bank's global deposits climbed by 13.1% year-on-year to ₹17 lakh crore by September, driven by $5.8 billion inflows in foreign currency non-resident-bank (FCNR-B) accounts through the Reserve Bank of India's dedicated window.
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