Canara BankAdvances +18%, NII Above ₹10,000 Cr, ECL Plan Set

Canara Bank reported Q1 FY27 global advances up 17.97% to ₹12.93 lakh Cr and deposits up 11.63%, taking global business to ₹29.05 lakh Cr, up 14.37%.

Net interest income rose 13.39% to ₹10,215 Cr, crossing ₹10,000 Cr for the first time, while net profit rose 2.19% to ₹4,856 Cr as treasury gains fell to ₹654 Cr from ₹1,617 Cr and provisions rose to ₹3,780 Cr. NIM was 2.52% against guidance of 2.50-2.60%. Asset quality improved, with gross NPA at 1.57%, net NPA at 0.36%, PCR at 94.76% and credit cost at 0.49%, while CET1 was 12.91% and CRAR 17.17%. CASA is 29.70%, below the 30-32% target for March 2027, and management plans to replace bulk deposits with retail deposits and FCNR(B) money, having raised $775 million in July.

ECL will need about ₹12,000 Cr of extra provisions, which the bank plans to absorb within two years without raising capital. Gold loans total ₹2.59 lakh Cr and the credit pipeline is about ₹50,000 Cr.