#1QWithCNBCTV18 | Canara Bank Gains Post Q1FY27 Earnings
MD & CEO, Brajesh Kumar Singh to CNBC-TV18
Global advances record strong double-digit growth YoY
Asset quality improves with lower gross and net NPAs
Fresh slippages decline sharply during the quarter
#canarabank #2026results #2026earnings #earningsgrowth #revenuegrowth #margingrowth #netinterestmargin #netinterestincome #loangrowth #creditgrowth #depositgrowth #profitgrowth #ebitdamargingrowth #2026growth #cnbctv18 #cnbctv18market #businessnews #businessnewstoday #businessnewsinenglish #sharemarkettoday
🔴CNBC TV18 LIVE TV: https://...
What Brajesh Singh said
Written from the verified transcript and checked against it. Every figure links to the moment it was said.
Brajesh Singh, MD and CEO of Canara Bank, discussed Q1FY27 results, highlighting strong business momentum with 17.97% advances growth and 11.6% deposit growth, both ahead of guidance. He said the bank will retain its 10-12% advances guidance but expects to better it. On FCNR(B) deposits, Singh revealed they have already raised $775 million against a $750 million target, expecting to cross $1 billion by month-end, with an overall target of $2.3-2.5 billion across all three dispensations. Asset quality improved significantly, with slippages at 0.15% for the quarter (annualized 0.60%) versus 0.80% guidance, gross NPA down to 1.57% from 1.84%, and net NPA at 0.36%. He attributed the SMA 2 book jump to government-guaranteed accounts that oscillate between SMA categories and will not slip. On margins, Singh said FCNR will cause some pressure but they will maintain NIM guidance of 2.5-2.60%, currently at 2.52%, by replacing bulk deposits with retail term deposits and improving the CD ratio.
Key takeaways
Raised $775 million in FCNR(B) so far, targeting $1 billion by month-end and $2.3-2.5 billion overall, which they expect to better
Slippages at 0.15% for Q1FY27, annualized 0.60%, well below the 0.80% full-year guidance
Gross NPA improved to 1.57% from 1.84%, with a March 2027 target of 1.50% that they expect to beat
Full-year recovery target of 11,000 crores, with Q1 recovery already exceeding the 2,500 crore quarterly target
NIM guidance maintained at 2.5-2.60%, currently at 2.52%, despite FCNR pressure, by shedding high-cost bulk deposits
0:12You know, with the current numbers, will you look to retain this or are you looking at an upward revision?
1:16And you know, with this FCNR raise, do you think margins could see some dilutive pressure?
2:39What's the rest of the year looking like in terms of, you know, what kind of additional slippages do you see and the recovery target that you have for the full year?
But we have Canara Bank that reported its numbers as well and Q1 numbers seem steady, good numbers coming in here. Let's go across to Ritu who's going to take us through the conversation with the management there. Ritu, over to you.
Thank you, Winnie. You know, Canara Bank shares have been in focus. They've reported a decent set of first quarter numbers, 2% rise in profits, 13% in net interest income, margins down slightly for the quarter, but the big surprise was asset quality. Sharp improvement there. So let's get in Rajesh Kumar Singh, the MD and CEO of Canara Bank, for more on their performance. Mr. Singh, thanks very much for joining us here on CNBC TV18. Let me start with your business momentum. You know that 18% advances growth, 11.6% deposit growth, both is well ahead of your guidance, especially on advances, 11 to 12% is what you'd said for the full year and 9 to 10% for deposits. You know, with the current numbers, will you look to retain this or are you looking at an upward revision?
Yes, the guidance we have given 10 to 12%, but that was in the month of March. Now, that time ECL was also not there, emergency line of credit was also not there, and then some credit demand is also there in the market. So we have grown at 17.97%, correctly said, and we want to keep the guidance at the same level, but we'll certainly better it.
You'll keep the guidance but you'll certainly better it, understand. But quick word on FCNR as well. What have you raised to date? What is the total target till the end of September? Any plans of raising ECB? And you know, with this FCNR raise, do you think margins could see some dilutive pressure?
No, see, I mean, we have given guidance for FCNRB. See, there are three dispensations in FCNRB and then ECB and OFCB also, but for those who are ECB and OFCB, the dispensation is available up to December. So as of now, everybody is crowded for dollar. So every bank, including us also. So we are targeting in this quarter only FCNRB. So as of now we speak, under 775 million of dollars we have already raised under FCNRB, and guidance we have given for 750 million, but already we have raised $775 million, and we hope that by the end of this month, we are left with four, five days, so we'll be crossing 1 billion. So overall, taken together, all the three, we have said that we will be raising 2.3 to 2.5 billion dollars. So we are going accordingly, our guidance, I mean, and again, that we will be bettering it here also. That is minimum 2.3 to 2.5 we have said, we will be certainly bettering there also.
Okay, $2.5 billion FCNRB deposit by the end of September. That is your base case and you probably end up doing better than that. Take that point, sir. You know, one of the highlights this quarter has been that improvement in asset quality. The ratios are looking better. The slippages, you know, has come down meaningfully as well. What's the rest of the year looking like in terms of, you know, what kind of additional slippages do you see and the recovery target that you have for the full year?
7 more exchanges in this transcript
Sign in free to read the rest of this interview. No card required.
Singh, B. (2026, July 27). A Good Q1FY27 For Canara Bank | Expect To Raise $1 Billion Via FCNR(B), Says Company | CNBC TV18 [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/2921795/
MLA
Brajesh Singh. "A Good Q1FY27 For Canara Bank | Expect To Raise $1 Billion Via FCNR(B), Says Company | CNBC TV18." CNBC-TV18, 27 Jul. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/2921795/.
BibTeX
@misc{singh2026_2921795,
author = {Brajesh Singh},
title = {A Good Q1FY27 For Canara Bank | Expect To Raise $1 Billion Via FCNR(B), Says Company | CNBC TV18},
howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
year = {2026},
month = {jul},
url = {https://ceointerviews.ai/interview/2921795/},
note = {Speaker-attributed transcript with timestamps}
}
