Canara Bank , one of India's leading public sector banks, has announced significant changes to its board of directors. The bank has re-elected Ms. Abha Singh Yaduvanshi and appointed Shri Gunjeet Singh Pannu as Shareholder Directors for a three-year term, effective from July 27, 2025, to July 26, 2028.

Re-election of Ms. Abha Singh Yaduvanshi

Ms. Abha Singh Yaduvanshi, aged 63, has been re-elected as a Shareholder Director. She has been serving on the bank's board since July 27, 2022. Ms. Yaduvanshi brings a wealth of experience to her role, having retired as Additional Secretary from the Lok Sabha Secretariat. Her educational background includes:

• BA Economics (Honours)
• MA Economics
• Post Graduate Diploma in Business Administration (PGDBA)

During her service, Ms. Yaduvanshi acquired extensive knowledge and experience in various sectors, including banking, finance, agriculture, and information technology.

Appointment of Shri Gunjeet Singh Pannu

Shri Gunjeet Singh Pannu, aged 63, has been newly elected as a Shareholder Director. His appointment brings valuable expertise to the bank's board. Shri Pannu's qualifications and experience include:

• B.Com, FCA (Fellow Chartered Accountant), and LLB
• Former Vice-President of the Income Tax Appellate Tribunal (ITAT)
• Over 39 years of experience as a practicing professional and in an adjudicatory capacity
• Rich and diverse experience in accountancy, finance, banking, direct taxes, and laws

Board Composition and Compliance

Both directors have been appointed under Section 9(3)(i) of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970. The bank has confirmed that neither Ms. Yaduvanshi nor Shri Pannu is related to any existing directors of Canara Bank.

In compliance with regulatory requirements, Canara Bank has declared that both directors are not debarred from holding the office of Director by virtue of any SEBI order or any other regulatory or statutory authority.

Outgoing Director

The bank also announced that Shri Bimal Prasad Sharma has ceased to be a Shareholder Director upon completion of his tenure on July 26, 2025.

These board changes reflect Canara Bank's commitment to maintaining strong corporate governance and bringing diverse expertise to its leadership team. The newly constituted board is expected to guide the bank in its future growth and strategic initiatives.

Canara Bank , one of India's leading public sector banks, has reported a robust 22% year-on-year increase in its first-quarter net profit. The bank's performance, while strong, shows some mixed signals in various financial metrics.

Q1 Financial Highlights

Key Factors Influencing Performance

The bank's performance in Q1 was characterized by both strengths and challenges:

1. Strong Non-Interest Income: The significant jump in net profit was primarily driven by robust non-interest income, including a substantial Rs 1,200.00 crore from Priority Sector Lending Certificates (PSLC) income.

2. Pressure on Interest Income: The bank faced headwinds in its core interest income. The Net Interest Income (NII) saw a slight decline of 1.71% year-on-year, attributed to falling yields on advances. The yield on advances dropped from 8.83% to 8.47%, likely influenced by the Reserve Bank of India's repo rate cuts.

3. Margin Compression: The Net Interest Margin (NIM) compressed from 2.90% to 2.55%, reflecting the challenging interest rate environment.

4. CASA Deposits Decline: Current Account Savings Account (CASA) deposits saw a seasonal reduction, particularly in institutional deposits, falling from Rs 77,800.00 crore to Rs 54,000.00 crore.

5. Improved Profitability Metrics: Despite challenges, the bank's Return on Assets (ROA) stood at 1.14%, surpassing its own guidance of 1.05%.

Management Outlook

K Satyanarayana Raju, MD and CEO of Canara Bank, expressed optimism about the bank's future performance:

• Expects business momentum to improve in the future
• Anticipates maintaining the 1.14% ROA going forward
• Foresees improved returns in the future, aligning with typical banking sector trends

Looking Ahead

While the first quarter showed some challenges, particularly in interest income and margins, the bank's ability to grow its non-interest income and maintain profitability above guidance levels is noteworthy. The management's positive outlook suggests potential for improved performance, especially if the anticipated business momentum materializes.

Investors and analysts will likely keep a close eye on how Canara Bank navigates the evolving interest rate environment and its strategies to boost core interest income in the coming quarters.