Canara Bank Share : Canara Bank has firmly stated that it has received no communication from the government regarding any PSU bank merger plans. The clarification came during the public-sector lender’s post-earnings press conference on Thursday.
While addressing the media, Canara Bank Managing Director and CEO K. Satyanarayana Raju said there has been no word from the Centre about any merger talks. Instead, the bank is focusing on expansion and strengthening its balance sheet.
The lender also announced plans to raise the entire approved amount of ₹9,500 crore via bonds during the current fiscal year, with a part of the funds expected to be raised in the third quarter of FY26.
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Strong Q2 Performance
Canara Bank reported a 19% year-on-year rise in net profit to ₹4,774 crore for the July–September quarter of FY26, compared to ₹4,014 crore in the same period last year. Its operating profit grew 12.2% to ₹8,588 crore from ₹7,654 crore a year earlier.
The bank’s asset quality showed notable improvement, with Gross NPA ratio falling to 2.35% from 3.73% last year, and Net NPA ratio improving to 0.54% from 0.99%. This marks a healthy improvement of 138 basis points (bps) and 45 bps, respectively.
Growth Across Segments
As of September 2025, Canara Bank’s global business grew 13.55% year-on-year to ₹26.78 lakh crore.
- Global deposits increased 13.4% to ₹15.28 lakh crore.
- Domestic deposits rose 12.62% to ₹13.95 lakh crore.
- Global advances jumped 13.74% to ₹11.51 lakh crore, while domestic advances were up 13.34% to ₹10.81 lakh crore.
Raju highlighted that the bank is leveraging data analytics and technology to identify potential CASA (Current Account and Savings Account) growth areas. The bank plans to open 280 new branches in FY26.
He added that Canara Bank exceeded regulatory targets, with priority sector lending at 44.56% and agricultural credit at 21.44% of ANBC, against norms of 40% and 18%, respectively.
Stock Gains and Outlook
Following the earnings announcement, Canara Bank shares surged up to 4.26% to ₹134.25 apiece before settling 3.30% higher at ₹132.89. The stock has gained 32.73% so far in 2025 and 28.57% in the past 12 months.
The bank’s slippage ratio also improved to 0.76%, down by 24 bps, showing stronger asset quality and better risk management.
With a credit growth rate of around 13%, the bank expects lending momentum to continue in the festive season, as demand for loans remains high through October.