Key Financial Performance Highlights (Q2 FY27)

Business Growth:

  • Global business reached ₹30,72,000 crore, growing 15.88% YoY
  • Global deposits at ₹16,97,000 crore, up 13.13% YoY
  • Global advances at ₹13,75,000 crore, up 19.46% YoY

Profitability:

  • Net profit reached record ₹5,175 crore, up 8.40% YoY
  • Net Interest Income grew 20.39% YoY to ₹11,000+ crore
  • Return on Equity at 18.49% (guidance: 16.5%)
  • Return on Assets at 1.04% (guidance: 1.01%-1.05%)
  • Earnings Per Share at ₹22.06 (guidance: ₹20)

Asset Quality:

  • Gross NPA improved to 1.33% (guidance: 1.50%)
  • Net NPA improved to 0.30% (guidance: 0.40%)
  • Provision Coverage Ratio at 95.34%, improved 175 bps YoY
  • Slippage ratio at 0.58% (guidance: 0.80%)
  • Credit cost at 0.47% (guidance: 0.75%)

Capital Adequacy:

  • CRAR at 17.19% with CET1 at 12.80%

Segment-wise Performance

Advances Growth (YoY):

  • RAM segment grew 21.03%
  • Retail credit grew 31.61%
  • Housing loan grew 17.35%
  • Vehicle loan grew 25.50%
  • MSME grew 15.49%

Gold Loan Portfolio:

  • Total gold loan: ₹2.82 lakh crore
  • Agriculture gold loan: ₹1.74 lakh crore
  • Non-agriculture gold loan: ₹1.08 lakh crore
  • Gold loan yield improved to 9.10% from 8.96% QoQ

Corporate Loans:

  • Corporate yield improved to 7.72% from 7.68% QoQ
  • 53% of book is repo-rate linked

Guidance vs Actual Performance

All guidance parameters were surpassed except CASA:

  • Business growth guidance: 10-11% | Actual: 15.88%
  • Advances growth guidance: 11-12% | Actual: 19.46%
  • Deposit growth guidance: 9-10% | Actual: 13.13%
  • CASA guidance: 30-32% | Actual: 29% (impacted by FCNR(B) deposits)
  • NIM guidance: 2.50-2.60% | Actual: 2.53% annual, 2.55% quarterly

Operational Highlights

Deposit Composition:

  • Bulk deposits maintained at ₹4.38 lakh crore (flat QoQ)
  • FCNR(B) deposits: $5.8 billion (₹55,000 crore) garnered
  • $3.2 billion of FCNR(B) utilized for lending/replacing bulk deposits
  • Cost saving of 100 bps on replaced bulk deposits plus CRR/SLR benefits

Slippages & Recoveries:

  • Total slippages: ₹1,844 crore
  • Agriculture: ₹687 crore
  • Corporate: ₹13 crore
  • Gold: ₹40 crore
  • MSME: ₹777 crore
  • Retail: ₹327 crore
  • SMA stress pool at 2.42% of book
  • SMA 2 (₹5cr+): 0.21% (₹2,838 crore)
  • SMA 1 (₹5cr+): 0.09% (₹1,304 crore)

Treasury & Investment Performance

  • AFS reserve loss: ₹1,300 crore for quarter (booked in reserves, not P&L)
  • FVTPL loss: ₹55 crore (vs profit of ₹555 crore previous quarter)
  • Total treasury impact: ~₹600 crore reduction vs previous quarter
  • Investment book composition: 80% HTM, 20% AFS/FVTPL
  • LCR: 115% as of 30 September 2026

ECL Transition Impact

  • Estimated one-time provision: ₹12,000-15,000 crore (increased from ₹10,000-12,000 crore due to yield hardening)
  • Impact includes HTM portfolio mark-to-market
  • Phasing flexibility: 5 years as per RBI, bank expects to complete in 1-2 years
  • Current CRAR of 17.19% provides buffer
  • Steady-state credit cost impact not yet quantified

Other Key Disclosures

Drought Impact:

  • ₹13,900 crore exposure in drought-affected areas (parts of Karnataka, Maharashtra)
  • Expected restructuring through SLBC mechanisms
  • No significant stress anticipated

Subsidiaries:

  • Canbank Factors sale process completed (expected 4x return on ₹14 crore investment)
  • Canara HSBC Life and Canara Robeco performing well

Technology & Fees:

  • Investing in digital advancements (QR codes, payment gateways, school fee modules)
  • Limited expected benefit from UPI MDR changes due to current cost structure

Pipeline & Outlook:

  • Sanctioned not disbursed + hot leads: ~₹47,000-50,000 crore
  • Strong demand from green energy, battery storage, power evacuation, data centers
  • Festive season expected to boost retail lending
  • NIM expected to sustain at 2.55% given 53% repo-linked book repricing