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Brajesh Singh
Brajesh Singh
Managing Director & CEO, Canara Bank
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Canara Bank Q2 Results: Profit Rises 8.4% To ₹5,175 Crore | MD & CEO Speaks

📅 Oct 15, 2026 Business Today 11 MIN 57 VIEWS 21 SEGMENTS · 2 SPEAKERS
Canara Bank delivers a strong Q2 FY27 performance, with net profit rising 8.4% year-on-year to ₹5,175 crore and net interest income surging 20% to ₹11,004 crore. In this exclusive earnings conversation, Brajesh Kumar Singh, MD & CEO of Canara Bank, discusses the key drivers behind the numbers, the bank's expanding loan book and its asset quality improvement. Global business grew 15.88% to ₹30.72 lakh crore, while global advances rose 19.46%. Retail credit recorded robust growth of 31.61%. Asset quality strengthened further, with gross NPA falling to 1.33% and net NPA declining to 0.30%. What l...

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 Q2 FY27 results, highlighting strong global business growth and robust profitability. He noted capital adequacy at 17.19% versus 12.5% requirement and provision coverage above 95%. Credit growth was broad-based: RAM credit up 21.03% YoY, retail 31% YoY, agriculture 14% YoY, MSME 15.49% YoY, corporate 17% plus YoY, and global advances 19% plus YoY. Singh reaffirmed full-year gross NPA guidance of 1.50%, having achieved 1.33% in the half year, with slippages at a minimum. He outlined maintaining NIM between 2.50 to 2.60 and return on average assets (ROA) between 1.01 to 1.05. He mentioned an overseas business of close to ₹2.60 lakh crore with branches in New York, London, Dubai (DIFC), and GIFT City. On valuation, he said markets will eventually acknowledge performance.

Key takeaways

  1. Canara Bank achieved gross NPA at 1.33% in the first half of FY27, ahead of the full-year guidance of 1.50%.
  2. Credit growth was strong across segments: RAM up 21.03% YoY, retail 31% YoY, agriculture 14% YoY, MSME 15.49% YoY, corporate 17% plus YoY.
  3. Global advances grew 19% plus YoY; overseas gross business is close to ₹2.60 lakh crore with branches in New York, London, Dubai (DIFC), and GIFT City.
  4. Management guided NIM between 2.50 to 2.60 and ROA between 1.01 to 1.05; current NIM is 2.53 and ROA 1.04.
  5. Slippages remained minimal at 0.5% in the quarter, with recoveries and upgradations exceeding slippages.

Numbers and commitments

FigureWhat it refers toTypeAt
17.19% Capital adequacy ratio metric 1:21
95% Provision coverage ratio metric 1:21
21.03% RAM credit growth YoY metric 2:40
6.23% RAM credit growth QoQ (June to September) metric 2:07
31% Retail credit growth YoY metric 2:40
3.34% Retail credit growth QoQ metric 2:40
14% Agriculture credit growth YoY metric 2:40
15.49% MSME credit growth YoY metric 2:40
17%+ Corporate credit growth YoY metric 2:40
2.60 lakh crore Total overseas gross business metric 6:36

Chapters

  1. 0:00Overall Q2 performance
  2. 2:07Credit growth by segment
  3. 3:57Asset quality and NPA guidance
  4. 6:11Overseas business and branches
  5. 7:08Guidance on NIM and ROA
  6. 8:02Impact of rate hike
  7. 9:37Stock valuation concerns

Questions asked in this interview

8
  1. 1:08What worked very well? What worked well?
  2. 2:07But the broader number at the top, how much did credit growth grow in Q2 versus Q2 last year and Q2 over Q1?
  3. 3:57Gross NPAs and net NPA have fallen QoQ as well as year-on-year, both in percentage and in number as well. What's the trajectory ahead?
  4. 5:04Actually, are you seeing people, or defaulters, returning money?
  5. 6:11If you can elaborate, which geographies, which sectors, and what's the overall size of the overseas pie?
  6. 7:08Anything that you would want to highlight in terms of guidance?
  7. 8:58Why is it that the market refuses to acknowledge this number?
  8. 10:14What have they been telling you?
Interviewer 0:11 ↗
Hello and welcome, ladies and gentlemen, on Business Today Television. And while the markets continue to improve their internals, it's the second-quarter earnings that are beating estimates. And leading from the forefront, especially in the PSU banking sector, is none other than Canara Bank. No matter how you slice and dice the numbers, they are fantastic. Net interest income, which is the core of any banking operation, for the first quarter rose a whopping 20% to 11,400 crore rupees for Canara Bank. Gross NPA, net NPA have declined, global businesses are doing phenomenally well, and credit growth is fabulous too. Joining us on the show to discuss the numbers gone by and the quarters ahead is Mr. Brajesh Kumar Singh, MD and CEO at Canara Bank. Namaste, Mr. Singh. Always a warm welcome.
Brajesh Singh 1:07 ↗
Thank you, sir.
Interviewer 1:08 ↗
How do you analyze these numbers for the quarters ahead? What worked very well? What worked well?
Brajesh Singh 1:21 ↗
So, everything has worked well considering our top line has increased, global business has increased. Profitability is also good. Net interest margin, which is rightly you said the core part of banking, that is also very robust. Our capital is also very well balanced and placed in excess of 17.19% as against 12.5% required, and our provision coverage also has increased at more than 95%, and asset quality is very good, robust, and going further also we do not see much stress in our books. So it's an overall performance across the board, and every department, every vertical has supported and given good results.
Interviewer 2:07 ↗
Okay. One, I mean, like I was saying, no matter how you slice and dice the data, it's fabulous. Let's start with the basics. What was overall credit growth? I see the breakup in retail as well as agriculture and housing loans, vehicle loans, everything doing phenomenally well. But the broader number at the top, how much did credit growth grow in Q2 versus Q2 last year and Q2 over Q1?
Brajesh Singh 2:40 ↗
Okay. So, that is Q2 to Q2, we have grown in RAM credit, if you talk about that, is 21.03%. And Q2 over Q2, last June quarter to September, also growth is very good at 6.23%. It will be more than 24%. Retail also we have grown good on a YoY basis, 31%, and quarter over quarter also there was a good growth, 3.34%. Agriculture also good growth, both 10% QoQ, 14% YoY. MSME also the story is same, 15.49% YoY, even in quarter over quarter also 5.20% we have grown. Corporate also 6.44% quarter over quarter and YoY 17 plus% we are growing. So meaning trajectory is also right, not only YoY but QoQ also we are growing. So global advances has grown at 19 plus% on a YoY basis, meaning which last quarter to this quarter, and then quarter over quarter, June to September, also growth was very good, that is at 6.32% only in one quarter. So trajectory is good, overall growth is good. So I think we are going good. Yeah.
Interviewer 3:57 ↗
Okay. Mr. Singh, in our earlier interactions you've mentioned a gradual target of net NPA percentage, so gross NPA percentage falling below 1 percentage point. Even in this quarter there has been a remarkable improvement. Gross NPAs and net NPA have fallen QoQ as well as year-on-year, both in percentage and in number as well. What's the trajectory ahead?
Brajesh Singh 4:28 ↗
So going further also, as it is, we said our guidance for the full year was 1.50%. And as of now, only in the half year we have achieved 1.33%. That is very remarkable, I would say. So again, I don't see much stress in our book. Our slippages are at bare minimum, 0.5% in a quarter. Even if you annualize it, it is only 0.58-60%. So going further also there is no stress. We are making every quarter more recoveries and upgradations than what we are degrading. So I guess further down the line also it will improve, it will further also improve. Yes.
Interviewer 5:04 ↗
The other point I just wanted to highlight, Mr. Singh, is that both NPAs, gross and net, will also reduce if credit growth is very sharp because the divisor increases. Actually, are you seeing people, or defaulters, returning money?
Brajesh Singh 5:27 ↗
Yes, that's why our recoveries and upgradations are more than our slippages. Now we have only slipped at a base of say 13.75 lakh, around close to 14 lakh crore of our book, only 1,844 crore, that too not specifically from one particular vertical, it is small, small amounts. So that is very controlled and the underwriting standards are very good. We are taking help of digital assessments and good credit rating. Credit rating has also increased. See, 87% of our large corporate book is A and above, which has increased from 84%.

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Cite this transcript

APA, MLA, BibTeX
APA

Singh, B. (2026, October 15). Canara Bank Q2 Results: Profit Rises 8.4% To ₹5,175 Crore | MD & CEO Speaks [Interview transcript]. Business Today. CEOInterviews.AI. https://ceointerviews.ai/interview/3062472/

MLA

Brajesh Singh. "Canara Bank Q2 Results: Profit Rises 8.4% To ₹5,175 Crore | MD & CEO Speaks." Business Today, 15 Oct. 2026. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/3062472/.

BibTeX 
@misc{singh2026_3062472,
  author       = {Brajesh Singh},
  title        = {Canara Bank Q2 Results: Profit Rises 8.4\% To ₹5,175 Crore | MD \& CEO Speaks},
  howpublished = {Interview transcript, Business Today. CEOInterviews.AI},
  year         = {2026},
  month        = {oct},
  url          = {https://ceointerviews.ai/interview/3062472/},
  note         = {Speaker-attributed transcript with timestamps}
}