Canara Bank , one of India's leading public sector banks, has reported robust financial results for the first quarter of fiscal year 2025-26, while also announcing ambitious growth targets for the coming years.

Q1 FY 2025-26 Financial Highlights

For the quarter ended June 30, 2025, Canara Bank posted impressive year-on-year growth across key financial metrics:

• Net profit surged by 21.69% to ₹4,752.00 crore
• Global business grew by 10.98% to ₹25,63,984.00 crore
• Global deposits increased by 9.92% to ₹14,67,655.00 crore
• Gross advances rose by 12.42% to ₹10,96,329.00 crore

The bank's asset quality showed significant improvement, with the Gross Non-Performing Asset (GNPA) ratio declining by 145 basis points year-on-year to 2.69%. The Net NPA ratio also improved, dropping by 61 basis points to 0.63%.

Canara Bank's Provision Coverage Ratio (PCR) strengthened to 93.17%, marking a 395 basis points improvement compared to the same quarter last year.

Strong Performance in Key Segments

The bank witnessed robust growth in several key segments:

• RAM (Retail, Agriculture, and MSME) credit grew by 14.90%
• Retail credit surged by 33.92%
• Housing loan portfolio expanded by 13.92%
• Vehicle loans increased by 22.09%

Profitability and Efficiency Metrics

Canara Bank's profitability and efficiency metrics also showed positive trends:

• Return on Assets (ROA) improved to 1.14%, up by 9 basis points year-on-year
• Earnings per share (EPS) increased by 21.66% to ₹21.01
• The bank's slippage ratio improved by 52 basis points to 0.80%

FY 2026 Growth Targets

Looking ahead, Canara Bank has set ambitious growth targets for the fiscal year 2026:

• Overall credit growth of at least 12%
• Corporate loan growth of 10%
• RAM sector growth to continue at 15%
• Return on Assets (ROA) target of 1.05%

The bank expects its Net Interest Margin (NIM) to remain around 2.5% in the next quarter, with potential gradual improvement in Q3 and Q4, contingent on the absence of further rate cuts.

Management Commentary

K. Satyanarayana Raju, Managing Director and CEO of Canara Bank, commented on the results and future outlook: "Our strong Q1 performance reflects the bank's resilience and strategic focus. We are committed to maintaining this growth momentum while ensuring robust asset quality. Our ambitious targets for FY26 underscore our confidence in the bank's potential and the broader economic recovery."

Conclusion

Canara Bank's impressive Q1 FY 2025-26 results and ambitious future targets demonstrate the bank's strong position in the Indian banking sector. With its focus on growth across diverse segments, improved asset quality, and enhanced profitability metrics, Canara Bank appears well-positioned to capitalize on the ongoing economic recovery and achieve its long-term objectives.

The Enforcement Directorate (ED) has leveled serious allegations against businessman Anil Ambani, claiming he defrauded Canara Bank of Rs 1,000 crores. This accusation comes as Canara Bank, one of India's leading public sector banks, reports robust financial performance for the first quarter.

Fraud Allegations

According to the ED, Anil Ambani is accused of significant financial misconduct affecting Canara Bank. The alleged fraud, amounting to Rs 1,000 crores, represents a major case of financial impropriety involving one of India's prominent public sector banks.

Canara Bank's Q1 Performance

Despite the allegations, Canara Bank has demonstrated strong financial results for Q1:

• Net Profit: The bank reported a net profit of Rs 4,752.03 crores, marking a substantial year-on-year increase of 21.69%.
• Global Business: Canara Bank's global business grew by 10.98% year-on-year, reaching Rs 25,63,984 crores.
• Asset Quality: The bank's asset quality showed improvement, with Gross Non-Performing Assets (GNPA) ratio declining to 2.69% from 4.14% in the same quarter last year.
• Net Interest Income: The bank's net interest income stood at Rs 9,009 crores for the quarter.

Key Financial Metrics

Business Segment Performance

The bank's retail banking operations showed significant growth:

• Retail credit grew by 33.92% year-on-year
• Housing loan portfolio increased by 13.92%
• Vehicle loans saw a growth of 22.09%

Management Commentary

K. Satyanarayana Raju, Managing Director & CEO of Canara Bank, stated, "Our Q1 results demonstrate the bank's resilience and strong fundamentals. We continue to focus on improving asset quality and expanding our retail portfolio."

Outlook

Despite the ongoing investigation into the alleged fraud, Canara Bank appears to be on a strong financial footing. The bank's improved asset quality and growth in key business segments indicate a positive outlook for the coming quarters.

As the ED's investigation into Anil Ambani's alleged fraud continues, it remains to be seen how this will impact Canara Bank's operations and reputation in the long term. The bank's ability to maintain its growth trajectory and asset quality will be closely watched by investors and regulators alike.