Canara Bank consolidated net profit declines 21.4% to Rs 3,195 crore in Q1

Bengaluru: Bengaluru-based public sector lender Canara Bank on Thursday reported 21.4% decline in consolidated net profit at Rs 3,195 crore for the first quarter ended June 30, 2025. In the corresponding quarter last year, the bank reported Rs 4,067 crore net profit.

The total income of the bank has gone up by 12.10% to Rs 41,441 crore during the June quarter as against Rs 36,966 crore in the year ago period.

The decline is on account of transfer of Rs 1,833 crore in one of its regional rural banks - Andhra Pragathi Grameena Bank to Union Bank as part of the merger of RRBs, said K Satyanarayana Raju, Managing Director & CEO, Canara Bank.

Addressing a press conference to share details of the first quarter financial results of the bank, he said the Bank has performed well on a standalone basis. Its net profit on a standalone basis has increased 21.69% to Rs 4,752 crore. Operating profit stood at Rs 8,554 crore, showing a growth of 12.32%.

Global business grew by 10.98% to Rs 25.63 lakh crore, of which global deposits stood at Rs 14.67 lakh crore, a growth of 9.92% and advances stood at Rs 10.96 lakh crore, showing a growth of 12.42%, he said.

The return on assets improved by nine basis points during the quarter to 1.14%. Its provision coverage ratio at 93.17% improved by 395 basis points. Net non-performing assets ratio stood at 0.63%, improved by 61 basis points.

During the June quarter, its net interest margin declined by 35 basis points and stood at 2.55% compared to 2.90% in the same quarter last year. Its yield on advances declined to 8.47% during June quarter compared to 8.66% in the year ago period.

Fundraise plans

The Bank is planning to raise Tier-1 capital of Rs 3,500 crore and Tier-2 capital of Rs 6,000 crore during the current financial year depending on the market conditions. It is also planning to list two of its subsidiaries - Canara Robeco Mutual Fund and Canara HSBC Life Insurance during the next three months. "We are waiting for SEBI approval for both the IPOs. We will go for listing whichever gets approval first. But both will be listed in the next two to three months," Raju said.