Canara Bank Q2 net profit rises 7.7% to ₹5,170 crore

Canara Bank Limited

reported Q2 standalone net profit of ₹5,170 crore, up 7.7% from ₹4,800 crore a year ago. Gross NPA fell to 1.33% from 1.57% in the previous quarter. What happened: Net NPA fell to 0.30% from 0.36%. Provisions for NPAs were ₹1,339 crore, down from ₹1,399 crore in Q1. Fresh slippages rose to ₹1,840 crore from ₹1,780 crore. Why it matters: Asset quality is improving. Gross NPA dropped 24 basis points in one quarter and net NPA dropped 6 basis points. For a public sector bank, a lower bad-loan ratio frees up capital and lowers future credit costs. My view: The profit growth is modest, and the provisions do not explain it. Provisions fell only ₹60 crore from Q1, which is small next to ₹5,170 crore of profit. Slippages also rose by ₹60 crore. So the fall in gross NPA must have come from recoveries, upgrades or write-offs, and my data does not split these. If write-offs drove it, the improvement is less clean. With NPAs falling but profit up only 7.7%, I suspect margin or deposit costs are holding growth back. I have no interest income, margin or deposit cost figures to confirm this. What I am watching: The earnings call on 14 October 2026 for net interest margin and deposit costs, whether slippages stay under ₹1,800 crore, and whether gross NPA keeps falling below 1.30%. Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.