State-owned Canara Bank reported a 21.7% growth in net profit to Rs 4,752 crore in the fiscal first quarter amid rise in other income while net interest income (NII) fell.

In the year-ago period, net profit stood at Rs 3,905 crore.

The bank’s NII fell 1.7% to Rs 9,009 crore in the June quarter, from Rs 9,166 crore in the same quarter of the previous fiscal.

Other income, on the other hand, jumped 32.7% year-on-year to Rs 7,060.48 crore from Rs 5,318.88 crore.

Total income rose to Rs 38,063 crore during the June quarter, from Rs 34,020 crore in the earlier year.

The bank's asset quality improved, with gross non-performing assets (NPAs) declining to 2.69% of gross advances at the end of the June quarter, from 2.94% a quarter ago and 4.14% a year ago.

Canara Bank’s gross NPA ratio improved to 2.69% from 2.94%, while Net NPA improved to 0.63% from 0.7%, QoQ.

Net NPA ratio improved to 0.63% from 0.7% in the preceding quarter and 1.24% in the earlier year.

Provision Coverage Ratio (PCR) improved to 93.17% from 89.22%.

Fresh slippages moderated to Rs 2,129 crore in Q1FY26 from Rs 2,655 crore in the March quarter. 

Recoveries from written-off accounts during the June quarter stood at Rs 1,414 crore. Slippage ratio at 0.80% improved by 52 basis points.

The lender’s global advances grew 12.42% YoY to Rs 10.96 lakh crore as of 30 June 2025.

Domestic advances rose 12.15% YoY to Rs 10.32 lakh crore, led by retail loans which jumped 33.92%. Within retail, home loans grew 13.92% and vehicle loans at 22.09%. Loans to the RAM (retail, agriculture and MSME) sector grew 14.90%.

The bank’s global deposits grew 9.92% YoY to Rs 14.68 lakh crore as of 30 June 2025. Domestic deposits grew 8.74% to Rs 13.39 lakh crore. 

Return on Assets (ROA) improved to 1.14%, from 1.05% a year ago.

Capital adequacy ratio rose to 16.52% from 16.38%.

Canara Bank had a count of 9,861 branches as of 30 June 2025.