Canara Bank Reports Robust Q2 Performance with 18.9% Profit Growth and Improved Asset Quality
Chennai, October 30, 2025: Canara Bank, one of India’s leading public sector banks, delivered a strong financial performance in the second quarter, marked by solid profitability and improved asset quality. The bank’s net profit rose 18.9% year-on-year to ₹4,774 crore, while total income increased 11.2% to ₹31,543 crore.
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| K. Satyanarayana Raju, MD & CEO |
Canara Bank’s profit growth reflects effective business strategies and sustained operational efficiency. The rise in total income was largely driven by higher interest income, which grew from ₹23,082 crore to ₹25,057 crore compared to the same quarter last year. Operating profit before provisions stood at ₹8,588 crore, slightly up from ₹8,554 crore in the previous quarter, underscoring consistent operational strength.
The bank achieved notable improvement in asset quality. The Gross Non-Performing Assets (GNPA) ratio fell to 2.35% from 2.69% in the previous quarter, while the Net NPA (NNPA) ratio declined to 0.54% from 0.63%. Fresh slippages also reduced to ₹20.30 billion from ₹21.30 billion, highlighting better credit risk management and stronger recoveries.
Provisions for NPAs decreased to ₹1,503 crore, compared to ₹1,845 crore in Q1, reflecting enhanced loan book stability and prudent risk management. This decline, coupled with improved asset quality, indicates greater confidence in the bank’s financial resilience.
Canara Bank’s Q2 results underscore its robust fundamentals and strategic focus on sustainable growth. With improving asset quality, healthy profitability, and strong operational metrics, the bank is well-positioned to capitalize on opportunities as India’s economy continues its recovery trajectory.
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