Canara Bank shares jump 4% to near 15-year high after lender’s Q2 net profit rises 19%, asset quality improves

Canara Bank

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26 Aug, 2025 12:21

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The shares of Canara Bank jumped more than 4 percent on October 30 after the PSU lender released its results for the second quarter of the financial year 2026.

Canara Bank shares were trading at Rs 134.25 apiece after the release of the results, which is the highest level seen by the stock in nearly 15 years.

Canara Bank Q2 Results:

Canara Bank reported a net profit of Rs 4,774 crore for the second quarter of the financial year 2026. This marks a 19 percent year-on-year (YoY) increase from the Rs 4,014 crore net profit reported in the same period last year.

The PSU lender’s net interest income (NII) however declined 2 percent YoY to Rs 9,141.19 crore during the quarter under review. Asset quality improved, with net NPA ratio reducing to 0.54 percent during Q2 FY26 from 0.99 percent in Q2 FY25. Gross NPA ratio fell to 2.35 percent during the September quarter of the current financial year, from 3.73 percent during the corresponding quarter of the previous financial year.

Canara Bank’s net profit margin improved to 12.37 percent in Q2 FY26, from 11.56 percent in Q2 FY25. The margin however declined sequentially from 12.48 percent recorded in the first quarter of FY26 (April-June).

Return on assets (ROA) increased to 1.12 percent, while credit costs decreased to 0.68 percent. Total provisions increased nearly 5 percent YoY to Rs 3,814 crore. Slippage ratio stood at 0.76 percent improved by 24 bps.

Canara Bank share price history:

Canara Bank shares have gained more than 5 percent in the past five days, and more than 7 percent in the past one month. The stock rose over 36 percent in the past six months.

After hitting a 52-week low of Rs 78.60 apiece in March this year, the stock has gained nearly 71 percent in around seven months to hit a 52-week high of Rs 134.25 apiece today. Its P/E ratio stands at over 7.

Also read: Our LIVE blog on Q2 earnings

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