Canara Bank Q2 Results show higher net profit and net interest income, lower provisions and an improvement in asset quality which led Canara Bank shares to climb 5%. The price of the Canara Bank stock rose to Rs 126.40 during the trading session, from the previous close of Rs 120.20. The market capitalisation of the company has jumped to Rs 1.14 lakh crore.

Key Highlights

• Canara Bank Q2 results indicate that the net profit grew by 8.4% to Rs 5,175 crore and Canara Bank shares have advanced 5% on the day following the results.
• Gross NPAs dropped to 1.57%, provisions were lowered to Rs 3,583 crore and global business increased 15.88% year-on-year.

The net profit of Canara Bank for the second quarter rose at 8.4% to Rs 5,175 crore from Rs 4,774 crore in the same quarter of the previous year. Net interest income (NII) also saw a rise to Rs 11,005 crore from Rs 9,141 crore in the September 2025 quarter.

Aside from the drop in total provisions, the bank's financial performance also saw gross non-performing assets (NPAs) decline, which overall meant improved asset quality from the year-ago figure.

Canara Bank Q2 Results: Provisions and NPAs Decline

The total provisions for the quarter ended September 26 decreased to Rs 3,583 crore in Canara Bank from Rs 3,814 crore in the same quarter of last year.

In addition, the bank's gross non-performing assets (GNPA) ratio also showed improvement, reducing to 1.57% in Q2 FY27 from 2.35% in the quarter ending September 2025. A lower GNPA ratio means that there is a decrease in the percentage of gross advances that are considered non-performing.

The Provision Coverage Ratio (PCR) improved to 95.34% as of September 2026, compared with 94.76% in June 2026 and 93.59% in September 2025. The increase in coverage ratio is due to an increase in provisions associated with non-performing loans.

The reduction in provisions and the upside in asset-quality indicators were in step with the bank's year-on-year earnings increase in the quarterly profit.

Canara Bank's Business Growth in Q2 FY27

Canara Bank's overall business and deposits and advances expanded in the September 2026 quarter.

As of September 2026, the total business of the lender has grown by 15.88% year-on-year to Rs 30,72,365 crore. Global deposits rose 13.13% to Rs 16,97,305 crore, while gross global advances grew 19.46% to Rs 13,75,060 crore.

Canara Bank also said its domestic business has expanded. As of September 2026, the total value of domestic deposits rose by 10.79% from the same period last year to Rs 15,47,979 crore.

Domestic gross advances jumped 16.95% to Rs 12,64,753 crore. A rise in deposits and advances reflects the lender's ongoing business growth in the quarter.

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Canara Bank Shares After Q2 Earnings

Canara Bank shares surged 5%, closing at Rs 126.40 each compared to the previous day's level of Rs 120.20. During the session the market cap of the bank stood at Rs 1.14 lakh crore.

The performance for the quarter showed a positive improvement in net profit and net interest income and a decrease in provisions and an improvement in gross NPA ratio. An increase in global business and deposits and advances also indicated expansion of the lender's operations.

Investors will keep a close eye on the bank's asset quality, credit growth, mobilisation of deposits and profitability in following quarters to gauge financial sustainability.