Canara Bank532483Earnings call transcript

Q2 FY27 call: total business tops ₹30 lakh crores, Gross NPA at 1.33%

Canara Bank has released the transcript of its Q2 FY27 earnings conference call held on 14 October 2026.

By ScoutQuest · Sat 17 Oct 2026, 6:58 PM IST · 2 min read

Total global business: ₹30,72,000 crores, up 15.88% YoY, against a full-year guidance of 10%-11%
Net profit: ₹5,175 crore, up 8.40% YoY and the highest of any quarter
Asset quality: Gross NPA 1.33% against guidance of 1.50; Net NPA 0.30%

The update carries the transcript of the bank's Q2 FY27 earnings conference call held on 14 October 2026, with the MD and CEO's opening remarks followed by analyst questions. Management spent much of the opening remarks comparing the quarter's numbers with the guidance it had given at the start of the year.

Business and profit

Total global business crossed a milestone at ₹30,72,000 crores, up 15.88% YoY, against a full-year guidance of 10%-11%.
Global deposits stood at ₹16,97,000 crores, up 13.13% YoY, against guidance of 9%-10%.
Global advances stood at ₹13.75 lakh crores, up 19.46% YoY, against guidance of 11%-12%.
Net Interest Income grew 20.39% YoY, described by management as an all-time high.
Net profit was ₹5,175 crore, up 8.40% YoY, described as the highest profit of any quarter.
CRAR was 17.19%.

Asset quality

Gross NPA at 1.33%, better than the full-year guidance of 1.50.
Net NPA at 0.30%, against earlier guidance of around 0.40%.
Provision Coverage Ratio at 95.34%, up 175 basis points YoY.
Annualised slippage ratio at 0.58%, against guidance of 0.80%.
Credit cost at 0.47%, against guidance of 0.75%.

Where the loan growth came from

RAM (retail, agriculture and MSME) grew 21.03%.
Retail credit grew 31.61%, with housing loans up 17.35% and vehicle loans up 25.50%.
MSME advances grew 15.49%.

Margins and yields

NIM was 2.53% on an annual basis and 2.55% for the quarter, within the guided range of 2.50%-2.60%.
Management said it expects to sustain NIM at 2.55%.
The repo rate linked book is 53% and that portion has already been repriced, with MCLR-linked loans also due for repricing.
Retail margin was stated at 8.65%.
Incremental yield on corporate loans improved from 7.68% to 7.72%; gold loan yield improved from 8.96% to 9.10%.
On rising competition in gold loans, management pointed to its long experience and appraisal and storage set-up.

The one shortfall

CASA was 29%, below the guided range of 30%-32%. Management said the bank had gathered $5.8 billion of FCNR(B) deposits, close to ₹55,000 crores in rupee terms, all of which sit in term deposits, and that without this the guidance would have been met or exceeded.

Return ratios

Return on Equity at 18.49% against guidance of 16.5%.
Return on Assets at 1.04%, within the guided 1.01%-1.05% band.
Earnings Per Share at ₹22.06, up 5%, against guidance of ₹20.

Management's own summary of the quarter was that, apart from CASA, the bank had surpassed all the guidance it had set with good margins. The commentary is management's assessment given on the call; the questions covered incremental yields and the outlook on margins.

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