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Brajesh Singh
Brajesh Singh
Managing Director & CEO, Canara Bank
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A Good Q2FY27 For Canara Bank | Credit Growth Guidance Of 11-12% Will Be Better, Says Company

📅 Oct 14, 2026 CNBC-TV18 9 MIN 83 VIEWS 14 SEGMENTS · 2 SPEAKERS
#2QWithCNBCTV18 | Canara Bank Posts Good Q2 Numbers; Net Int Income Up 20.4% (YoY) MD & CEO, Brajesh Kumar Singh To CNBC-TV18 Credit growth guidance of 11-12% will be better on strong festive season demand Deposit growth will catch up and the gap between deposit and advances growth will narrow down Net Interest Margin will be protected and maintained in the 2.50-2.60% range #canarabank #2026results #2026earnings #earningsgrowth #revenuegrowth #margingrowth #netinterestmargin #netinterestincome #loangrowth #creditgrowth #depositgrowth #profitgrowth #ebitdamargingrowth #2026growth #cnbctv1...

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 the bank's Q2FY27 performance, highlighting strong advances growth of 19.5% with retail growing over 31% and corporate over 17%. He maintained the full-year credit growth guidance of 11-12% but stated the bank will exceed it. Singh noted deposit growth is picking up, especially in granular retail deposits, and expects the gap between deposit and advances growth to narrow. He addressed treasury income challenges from rising bond yields, mentioning a 30-38 crore rupee impact per basis point, and downplayed the impact of regulatory changes on insurance and fee income. Singh defended the bank's NIM protection and provided guidance of 2.5-2.60%, expecting to maintain or slightly improve it. He also discussed the minimal exposure to drought-affected states and adherence to SLBC guidance.

Key takeaways

  1. Will better the 11-12% credit growth guidance for FY27, not revise it.
  2. Every basis point of yield hardening impacts income by 30-35-38 crore rupees.
  3. Insurance and fee income dip expected to be around 200 crore rupees, minimal.
  4. NIM guidance of 2.5-2.60%, currently at 2.53-2.55%, will be maintained or improved.
  5. Drought-affected states' total exposure is around 15-16,000 crore rupees.

Numbers and commitments

FigureWhat it refers toTypeAt
19.5% Advances growth metric 0:33
11-12% Credit growth guidance for FY27 guidance 0:33
30, 35, 38 crores Impact on income per basis point of yield hardening metric 3:51
44 basis points Yield hardening from June to September metric 3:51
20.39% YoY net interest income growth metric 3:51
7.73% QoQ net interest income growth metric 3:51
150 crores Expected dip in life insurance franchise income commitment 6:03
200 cr rupees Total less earning from fees and insurance metric 6:03
10,000 crores Profit surpassed in half year metric 6:03
15 to 16,000 cr Exposure to drought-affected states metric 7:15

Chapters

  1. 0:00Q2FY27 Earnings and Growth Momentum
  2. 0:33Credit Growth Guidance
  3. 1:52Deposit Growth and CD Ratio
  4. 3:06Treasury Income and Regulatory Impact
  5. 5:44Insurance and Fee Income Impact
  6. 6:41Margins and Asset Quality
  7. 7:15Drought-Affected States Exposure

Questions asked in this interview

5
  1. 0:33And if yes, your current guidance for the full year is 11 to 12% credit growth. Wouldn't you revise that up?
  2. 1:52And how are you looking to bring down that CD ratio, which is now well above 81?
  3. 3:06What kind of impact do you foresee on the fee income on account of that?
  4. 5:44How much of your bank insurance income is going to be exposed or at risk, and what proportion of your fee income comes from this insurance distribution that is now going to be impacted?
  5. 6:41And secondly, on asset quality, anything to flag, especially in light of what's happening in Maharashtra with, you know, the announcement of farm loan restructuring and whatnot, and if that would impact recovery?
Interviewer 0:07 ↗
Welcome back. Let's focus on some earnings that have come in. Canara Bank has been a share that's been very much in the spotlight after reporting a solid set of numbers for the second quarter today. The net interest income grew by more than 20% over the previous year, but operating profit rose only 2% as other income declined. Asset quality showed an improvement as well. So let me bring in Brajesh Singh, who is the MD and CEO of Canara Bank, for more on their second quarter performance and the way ahead.
Thank you so very much for joining us here first on CNBC TV18. You know your business growth, let me just start with that. I mean, strong growth in advances, 19.5%, retail growing more than 31%, corporate 17% plus kind of rates. Do you expect to sustain this kind of a momentum through the course of the year? And if yes, your current guidance for the full year is 11 to 12% credit growth. Wouldn't you revise that up?
Brajesh Singh 1:00 ↗
No, considering the kind of growth. From last quarter only we are showing, last quarter also where our growth was very robust. This time also we have sustained, maintained that growth. And going further, there will be festive season. You see that most of the underwriting, especially in retail and other related to retail growth driven due to the consumption and all, will be there in the next quarter also. So we see that growth will be again, they'll be very, very robust. And yes, that guidance we have given of growth was 10 to 11%, 11 to 12%, but that was before my joining. So I thought, let me work hard and better it. Instead of revising it, we'll be bettering it.
Interviewer 1:40 ↗
So you're not changing the guidance, but you're saying you will do better than 11 to 12%.
Brajesh Singh 1:47 ↗
That's correct.
Interviewer 1:52 ↗
Okay, you're saying that is correct. You know, deposits are also growing well, but then again they remain slower than the kind of growth you're seeing on your advances front, and this is despite that FCNR raise. Your CD ratio also, I see, has inched up in the quarter to more than 81%. You know, do you expect deposits to catch up as well? And how are you looking to bring down that CD ratio, which is now well above 81?
Brajesh Singh 2:20 ↗
Yes, incrementally our deposit, the growth in deposit is picking up, you see. And the most heartening thing is that we are growing good in the granular retail deposits, maybe saving bank individual or maybe retail term deposits also. So even if we exclude FCNR, still our growth is around 11%. So there was some kind of growth in advances from FCNRB leverages also. So that has also increased a little bit of advances growth. So that won't be in the next year, I hope. And the kind of products and processes and the kind of campaigns we are having, so deposit will be catching up. And going further, we will be maintaining this gap between the growth of deposit and advances will be narrowing down.

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Cite this transcript

APA, MLA, BibTeX
APA

Singh, B. (2026, October 14). A Good Q2FY27 For Canara Bank | Credit Growth Guidance Of 11-12% Will Be Better, Says Company [Interview transcript]. CNBC-TV18. CEOInterviews.AI. https://ceointerviews.ai/interview/3057623/

MLA

Brajesh Singh. "A Good Q2FY27 For Canara Bank | Credit Growth Guidance Of 11-12% Will Be Better, Says Company." CNBC-TV18, 14 Oct. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3057623/.

BibTeX 
@misc{singh2026_3057623,
  author       = {Brajesh Singh},
  title        = {A Good Q2FY27 For Canara Bank | Credit Growth Guidance Of 11-12\% Will Be Better, Says Company},
  howpublished = {Interview transcript, CNBC-TV18. CEOInterviews.AI},
  year         = {2026},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/3057623/},
  note         = {Speaker-attributed transcript with timestamps}
}