PSU Bank Mergers: Canara Bank Awaits Government Directive
Canara Bank addressed the topic of PSU bank mergers during its post-earnings press conference on Thursday and said that it has not heard anything from the government on the same.
Besides this, the public-sector lender also announced that it plans to raise the entire approved amount of Rs 9,500 crore via bonds in the current fiscal year, some of which will be raised in the third quarter of FY26.
Q2 FY26 Earnings Report
Earlier in the day, the bank reported a 19% rise in its net profit for the second quarter of FY26, boosting its stock to touch a 15-year high.
The bank’s bottom line stood at Rs 4,774 crore, against Rs 4,014 crore in the year-ago period. Canara Bank’s asset quality also improved in the quarter under review, with the Net NPA going down. However, the net interest income or NII declined 2% to Rs 9,141.19 crore for the quarter ended September 30.
Asset Quality and Profit Margin
Apart from this, Gross NPA ratio fell to 2.35% in Q2 FY26, from 3.73% during the same quarter of the last financial year and net profit margin grew from 11.56% in the year-ago period to 12.37% in the July-September period.
The shares went as high as 4.26% to Rs 134.25 apiece after the earnings announcement. They settled 3.30% higher at Rs 132.89. The scrip has 32.73% year-to-date and 28.57% in the last 12 months.
Outlook and Credit Growth
The management saw an increased demand for credit in October owing to the festival season and expects credit growth around the current pace of 13%.
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