Canara Bank Q1 Results: PSU lender shares surge after asset quality improves, slippages moderate

Shares of Canara Bank Ltd. surged to the highs of the day, gaining as much as 4% after the lender's asset quality in the June quarter improved on a sequential basis.

Canara Bank's gross NPA improved to 2.69% from 2.94% last quarter, while Net NPA improved to 0.63% from 0.7% in the previous quarter.

The lender's Net Interest Income (NII) or core income fell 1.7% from last year to ₹9,009 crore, while net profit grew 21.7% on a year-on-year basis to ₹4,752 crore, this was aided by a jump in other income.

Canara Bank's other income for the quarter grew to ₹7,060 crore from ₹5,318 crore last year.

Global advances for the quarter increased by 12.4% from last year to ₹10.96 lakh crore, while deposits saw a 10% growth on a year-on-year basis to ₹14.67 lakh crore.

Addition of fresh slippages also moderated. Fresh slippages during the June quarter stood at ₹2,129 crore, from ₹2,655 crore in the March quarter.

Recoveries from written-off accounts during the quarter stood at ₹1,414 crore.

Shares of Canara Bank are trading 4% higher after the results announcement, to trade at ₹112.5. The stock has risen 11.6% so far in 2025.