Kamal Ghorui
MUMBAI: Canara Bank reported a 26% rise in net profit to Rs 5,155 crore for the quarter ended Dec 31, 2025, aided by higher operating profit, strong growth in non-interest income and a sharp improvement in asset quality.Operating profit rose 16.4% year on year to Rs 9,119 crore, while total income increased 10.4% to Rs 39,881 crore. Net interest income grew marginally by about 1.1% from a year earlier to Rs 9,252 crore, as interest income rose 5.5% but was partly offset by a 7.4% increase in interest expenses.Non-interest income emerged as a key driver, surging 36.2% year on year to Rs 7,900 crore, supported by a sharp jump in gains from the sale of investments. Operating expenses rose 12.9% to Rs 8,033 crore, reflecting higher staff and operating costs.Provisions increased 6.2% year on year to Rs 3,964 crore. While tax provisions rose, provisions for non-performing assets declined sharply, indicating improving asset quality. Gross non-performing assets fell to Rs 24,833 crore from Rs 35,061 crore a year ago, with the gross NPA ratio improving to 2.08% from 3.34%. Net NPA ratio declined to 0.45%, while provision coverage strengthened to 94.19%.The bank also reported steady balance sheet expansion, with global deposits rising about 13% year on year to Rs 15.21 lakh crore and global advances growing nearly 14% to Rs 11.92 lakh crore. Credit growth was led by the retail, agriculture and MSME segments, which together grew nearly 19% from a year earlier.Profitability ratios improved during the quarter, with return on assets rising to 1.16% and return on equity to 20.65%. Capital adequacy also strengthened, with the CET-1 ratio increasing to 12.37%
