Post by : Badri Ariffin

Canara Bank shares advanced more than 4% on Wednesday to close at ₹134.25, marking the strongest level for the stock in almost 15 years after the public sector lender released its Q2 FY26 financials.

The bank recorded a consolidated net profit of ₹4,774 crore for the September quarter, up 19% from ₹4,014 crore a year earlier. Net interest income dipped marginally, falling 2% year-on-year to ₹9,141.19 crore for the quarter.

Asset quality showed notable improvement: gross non-performing assets fell to 2.35% in Q2 from 3.73% a year ago, while net NPA narrowed to 0.54% from 0.99% over the same period.

Profitability metrics improved as well, with the bank’s net profit margin rising to 12.37% versus 11.56% in the comparable quarter last year, though slightly below the 12.48% reported in Q1 FY26. Return on assets increased to 1.12%, credit costs eased to 0.68%, and provisions climbed roughly 5% year-on-year to ₹3,814 crore.

On the bourse, Canara Bank has shown strong momentum: the stock is up over 5% in the past five trading sessions, about 7% in the last month and more than 36% over six months. From a 52-week low of ₹78.60 in March 2025, the share has surged nearly 71% to its current 52-week peak.

Overall, the quarter’s results — higher earnings, cleaner balance-sheet metrics and renewed investor interest — underline growing confidence in the PSU banking segment.

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