Canara Bank Q1FY26 Results: Net NPA Improved to 0.63%, Domestic Deposits Rose ~9%

On July 25, 2025, Canara Bank shares are in focus as the public sector bank released its earnings for the quarter ended June 30, 2025. At 09:25 AM, Canara Bank shares rose 1.10% to ₹114.75 on BSE after opening at ₹113.90.

As of June 2025, Canara Bank recorded a strong year-on-year growth in its global business, which surged by 10.98% to reach ₹25.63 lakh crore. The bank's global deposits grew by 9.92% to ₹14.67 lakh crore, while gross global advances increased by 12.42%, amounting to ₹10.96 lakh crore.

Focusing on the domestic front, the bank posted a robust performance as well. Domestic deposits rose to ₹13.39 lakh crore, reflecting a 8.74% year-on-year increase. Gross domestic advances saw a solid growth of 12.15%, reaching ₹10.32 lakh crore. Notably, the RAM (Retail, Agriculture, and MSME) credit segment expanded by 14.90% to ₹6.31 lakh crore, underlining the bank’s continued support to priority sectors.

The retail lending portfolio registered significant momentum, growing by 33.92% year-on-year to ₹2.35 lakh crore. Within this, the housing loan segment alone accounted for ₹1.09 lakh crore, posting a 13.92% growth over the previous year.

Asset Quality Improvements

The bank demonstrated marked improvement in its asset quality during Q1FY26. The Gross Non-Performing Assets (GNPA) ratio declined to 2.69% as of June 2025, down from 2.94% in March 2025 and 4.14% in June 2024. Similarly, the Net NPA (NNPA) ratio improved to 0.63%, compared to 0.70% in the previous quarter and 1.24% in the same quarter last year. The Provision Coverage Ratio (PCR) strengthened to 93.17% as of June 2025, improving from 92.70% in March 2025 and 89.22% in June 2024.

Capital Adequacy

The Capital to Risk Weighted Assets Ratio (CRAR) of the bank stood at a healthy 16.52% at the end of Q1FY26. Within this, Common Equity Tier-1 (CET1) was at 12.29%, Tier-I capital at 14.58%, and Tier-II capital at 1.94%, showcasing a strong and well-capitalized balance sheet.

Priority Sector and Financial Inclusion

Canara Bank has exceeded the regulatory targets set under priority sector lending. As of June 2025, the bank achieved 45.63% of its Adjusted Net Bank Credit (ANBC) in priority sector lending, surpassing the mandated 40%. Agricultural credit stood at 23.25% against the required 18%. Other segments also reflected strong compliance: credit to small and marginal farmers was 16.57% (norm: 10%), credit to weaker sections was 22.28% (norm: 12%), credit to micro enterprises reached 9.82% (norm: 7.5%), and credit to non-corporate farmers was 19.25% (norm: 13.78%).

Also Read: Coromandel PAT Jumps 54% in Q1 FY26 Results; To Raise Stake in Senegal Mining Unit

Branch and ATM Network

As of June 30, 2025, Canara Bank maintained a widespread presence with a total of 9,861 branches across the country. These include 3,143 rural, 2,903 semi-urban, 1,951 urban, and 1,864 metro branches. The bank also operated 7,907 ATMs, ensuring robust customer accessibility. Additionally, Canara Bank continued to expand its international footprint with overseas branches in London, New York, Dubai, and the IBU at GIFT City.

For investors tracking Canara Bank performance, holding shares through a Demat account ensures secure and seamless access to corporate actions like dividends and earnings updates.

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