Canara Bank (CANBK) Q2 26/27 earnings summary

Executive summary

• Global gross business reached ₹30,72,365 crore at Sep'26, up 15.88% YoY and 5.76% QoQ; advances grew 19.46% and deposits 13.13%.

• Q2 standalone net profit was ₹5,174.76 crore, up 8.40% YoY; consolidated profit after minority interest was ₹5,381.59 crore.

• Asset quality improved, with gross NPA at 1.33%, net NPA at 0.30% and PCR at 95.34%.

Financial highlights

• Q2 NII rose 20.39% YoY to ₹11,005 crore; total income was ₹40,931.19 crore and interest earned ₹35,159.39 crore.

• Interest on advances increased 15.91% YoY to ₹26,754 crore; non-interest income declined 18.17% to ₹5,772 crore.

• Total expenses rose 7.21% YoY to ₹32,173 crore, including interest expenses of ₹24,154 crore, up 7.82%.

• Operating profit was ₹8,758.13 crore, up 1.98% YoY; provisions were ₹3,583 crore, down 6.06%.

• H1 standalone net profit was ₹10,030.58 crore versus ₹9,525.99 crore; consolidated H1 profit after minority interest was ₹10,562.30 crore versus ₹8,044.98 crore.

Outlook and guidance

• FY27 global business growth guidance is 10%–11%, advances 11%–12% and deposits 9%–10%; Sep'26 growth was 15.88%, 19.46% and 13.13%, respectively.

• FY27 guidance remains unchanged; management aims to sustain growth and outperform initial targets rather than reset them.

• FY27 NIM guidance is 2.50%–2.60%; management expects quarterly NIM to be sustainable near 2.55%, subject to repricing, deposit costs and lending growth.

• FY27 targets are ROE 16.50%, ROA 1.01%–1.05% and EPS ₹20; Sep'26 actuals were 18.49%, 1.04% and ₹22.06.

• Domestic CASA guidance is 30%–32% versus 29% actual; management attributed pressure partly to ₹55,000 crore of FCNR deposits held in term deposits.