Canara Bank on Wednesday reported a standalone net profit of Rs 5,175 crore for the second quarter of FY27, up more than 8% from Rs 4,774 crore in the corresponding quarter of the previous financial year. The earnings announcement lifted the bank’s shares nearly 5%.
The lender’s net interest income (NII), or the difference between interest earned and interest expended, jumped more than 20% YoY to Rs 11,005 crore during Q2 of the ongoing financial year 2027, from Rs 9,141 crore reported in the same period of FY26. The shares of the company jumped to Rs 126.44 apiece on NSE.
Operating profit margin however reduced to 21.40% in the second quarter of FY27 from 22.25% in the year-ago period. Net profit margin however increased slightly to 12.64%, from 12.37% in the same period last year. The bank’s overall net worth rose nearly 17% YoY to Rs 1.13 lakh crore in the quarter which ended on September 30, 2026.
Canara Bank’s asset quality improves
Canara Bank’s asset quality also improved, with net non performing assets (NNPA) reducing around 34% YoY to Rs 4,053 crore, while gross performing assets (GNPA) fell over 32% YoY to Rs 18,299 crore during the quarter under review. As a result, gross NPA ratio declined to 1.33% in Q2 FY27, from 2.35% in the corresponding quarter of the previous financial year.
The lender’s annualised return on assets (RoA) stood at 1.05% in Q2 FY27, as against 1.10% in the same period last year. Its debt-equity ratio meanwhile stood at 0.52%, as against 0.55%.
Canara Bank’s provisions decreased over 6% YoY to Rs 3,583 crore, while quarterly net interest margin (NIM) stood at 2.55%, compared to 2.5% in the year-ago period. Its cost of funds (CoF) decreased to 4.88% in Q2 FY27, from 5.21% in Q2 FY26, while yield on advances ratio fell to 8.03% from 8.4%. Cost of deposits ratio meanwhile dropped to 5.27%. Slippage ratio eased to 0.15% from 0.19%.
Its overall business performance is on track to meet its FY27 guidance, except CASA ratio that stood at 29%, slightly lower than its 30-32% guidance.
Canara Bank share price
Canara Bank shares gained more than 5% in a week and over a percent in a month, but the stock is overall down around 19% in 2026 so far. In the longer term, the shares of the company have delivered 71% returns over three years.
The shares of the lender have delivered multibagger returns of over 224% in five years. Its market capitalisation currently stands at around Rs 1.13 lakh crore.
Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.