Canara Bank Q2 Profit Hits ₹5,175 Crore; NII Up 20.4%, Gross NPA Falls to 1.33%
Shares of Canara Bank gained as much as 4% on Wednesday, October 14, 2026, after the state-run lender reported September quarter results that improved year on year across key parameters. The Canara Bank Q2 results also showed better asset quality compared with the June quarter.
Earnings Snapshot
Canara Bank reported a net profit of ₹5,175 crore for the September quarter, against ₹4,774 crore in the same quarter last year, an increase of about 8.4% on those figures. Net interest income (NII), the bank's core income, rose 20.4% year on year to ₹11,004 crore from ₹9,141 crore in the base quarter, crossing the ₹11,000 crore mark.
| Indicator | Previous | Current | Change |
|---|---|---|---|
| Net profit (Sep 2025 quarter vs Sep 2026 quarter) | ₹4,774 crore | ₹5,175 crore | About +8.4% |
| Net interest income (year-ago quarter vs current) | ₹9,141 crore | ₹11,004 crore | +20.4% |
Asset Quality Improves
Asset quality improved on a sequential basis. Gross NPA fell to 1.33% from 1.57% in June, and net NPA eased to 0.3% from 0.36% in the previous quarter. In absolute terms, gross NPA declined by about ₹2,055 crore.
| Indicator | June 2026 | September 2026 | Change |
|---|---|---|---|
| Gross NPA (%) | 1.57% | 1.33% | -0.24 percentage points |
| Net NPA (%) | 0.36% | 0.30% | -0.06 percentage points |
| Gross NPA (₹ crore) | ₹20,354.34 | ₹18,298.95 | Lower |
| Net NPA (₹ crore) | ₹4,652.95 | ₹4,053.19 | Lower |
| Provisions (₹ crore) | ₹3,780 | ₹3,583 | Lower |
| Fresh slippages (₹ crore) | ₹1,781 | ₹1,844 | Marginally higher |
A decline in provisions also supported profitability during the quarter. Provisions stood at ₹3,583 crore at the end of September, down from ₹3,780 crore in June. Fresh slippages rose marginally to ₹1,844 crore from ₹1,781 crore.
Market and Sector Impact
The stock's intraday gain of as much as 4% followed the results. The quarter combined double-digit NII growth with lower gross and net NPA ratios, though the rise in profit was more modest than the growth in core income. The marginal increase in fresh slippages was the one metric that moved in the opposite direction to the rest of the asset quality data.
What to Watch
Track the direction of fresh slippages in coming quarters, whether provisions continue to decline, and whether the gross NPA ratio keeps moving lower from 1.33%. NII growth sustainability, given the 20.4% year-on-year reading, will also be a focus for the lender's next quarterly update.