Stories
Canara Bank Expects Loan Growth to Beat 12% Target on Retail Surge
- •Canara Bank expects to exceed its FY27 credit growth target of 11 to 12 percent, driven by strong demand in retail and corporate lending according to MD and CEO Brajesh Kumar Singh.
- •Advances grew by 19.5 percent year-on-year in the September quarter, with retail loans surging over 31 percent and corporate lending rising more than 17 percent.
- •The Bengaluru-based public sector lender reported a net profit of 5,175 crore rupees and net interest income of 11,004 crore rupees for the July-September quarter.
- •The bank aims to boost retail deposits to catch up with robust loan growth and manage its credit-deposit ratio which rose above 81 percent.
- •Management expects to maintain its net interest margin between 2.5 and 2.6 percent while keeping asset quality exposure to calamity-hit states manageable.
Key Questions Answered
Canara Bank expects to exceed its credit growth target of 11-12% for FY27, driven by strong retail demand which surged over 31% year-on-year in the September quarter. During Q2 FY27, the bank reported a net profit of ₹5,175 crore and a net interest income of ₹11,004 crore.
With its credit-deposit ratio rising above 81%, the bank is focusing on deposit mobilization through retail savings accounts and fixed deposits to catch up with loan growth. Canara Bank has also mobilized over $2 billion through FCNR(B) deposits to help manage funding costs and support its lending operations.
Canara Bank expects to maintain its net interest margin at 2.5-2.6% with a scope for modest improvement through careful loan approvals and cost control. Additionally, the bank considers its exposure of ₹15,000 to ₹16,000 crore across calamity-hit states like Maharashtra and Karnataka to be manageable.
