Canara Bank — Q2 FY26
Canara Bank reported a strong Q2 FY26 with net profit of INR 4,774 crore (+18.93% YoY) and operating profit of INR 8,588 crore (+12.2% YoY).
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions auditedConsistentNumbers vs filing
Partial answer
High priority
Outlook on margins and CASA growth
Asked by Mahrukh
Management gave a qualitative timeline but no quantitative margin guidance.
vague timelineno specific number
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Question
So from now on, do we expect margins to stay stable or improve if there are no further cuts?
Satyanarayana Raju, MD and CEO
So one more quarter, it may continue to be stable, madam. Thereafter, you can say there is some improvement may happen.
Answered
High priority
Impact of new ECL guidelines on credit cost
Asked by Mahrukh
Management gave a clear range for credit cost below 1%.
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Question
So once they are implemented, what do you see as your run rate of credit cost? Will it be higher than what it is now?
Satyanarayana Raju, MD and CEO
I don't think that it will have impact so much on that credit cost, madam. ... It will be well within less than 1% only.
Answered
High priority
Growth outlook and green shoots
Asked by Mahrukh
Provided specific sanction data to support growth outlook.
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Question
Going ahead, do you see it accelerating? I mean, are there any green shoots in October which makes you more confident about growth?
Satyanarayana Raju, MD and CEO
Just two days back, our board meeting, the Credit Sanction Committee has cleared INR 26,000 crore worth of loans only in one meeting. That gives you an idea that how the proposals are there in our bank.
Partial answer
High priority
CASA strategy and NIM decline
Asked by Ashok Ajmera
Management gave qualitative assurance but no quantitative NIM guidance.
no specific NIM targetqualitative only
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Question
One thing on CASA, our strategy. And second one, sir, if you observe this NIM is also going down from 2.9% six quarters back to now 2.50%. ... how are we controlling this fall?
Satyanarayana Raju, MD and CEO
We expect that the same current level in absolute numbers... Next quarter also, we see the same. Maybe little bit improvement on the same level will be there. There won't be any further dip in those areas.
Answered
High priority
One-off gains from stake sale and PSLC fees
Asked by Anand Dama
Provided specific numbers for stake sale and PSLC surplus.
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Question
What kind of one-off gains that we can expect from the stake sale in Canara Robeco and Canara Life? And PSL fees this quarter also are very strong. Should we expect that to continue?
Satyanarayana Raju, MD and CEO
We got benefit of almost INR 2,000 crores. ... The entire amount will be booked in this current quarter. ... we have a surplus of almost INR 25,000 crores, which we can sell in the market.
Declined
Medium priority
Possibility of private banker as MD & CEO
Asked by Anand Dama
Management declined to comment on succession process.
refused to commentdeferred to FSIB
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Question
Is there any chance that a private banker also could be a contender for the MD & CEO post?
Satyanarayana Raju, MD and CEO
No, it's beyond my level to comment on those things because already notification has come. ... FSIB will take a call who is the suitable candidate.
Answered
Medium priority
Reason for sharp growth in current account balances
Asked by Mona Khetan
Explained the volatility due to institutional deposits.
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Question
If you look at the current account balances, there was a sharp growth this quarter after a decline last quarter. So if you could just highlight what really happened here.
Satyanarayana Raju, MD and CEO
Current account is we have some institutional deposits. Quite often we get the money, it goes out of that. ... So it's not that an unexpected thing something has happened.
Answered
Medium priority
One-off items in margin and interest on written-off accounts
Asked by Bhavik Shah
Provided specific numbers for PSLC and interest on written-off accounts.
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Question
Last quarter we had one-off in the margin. Is there any one-off this quarter?
Satyanarayana Raju, MD and CEO
No, last quarter one-off the margin is PSLC only. Except that nothing is there. ... Approximately INR 450 crores, sir.
Answered
Medium priority
Interest on income tax refund and recoveries from written-off accounts
Asked by Ashlesh Sonje
Provided specific numbers for IT refund and recovery guidance.
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Question
If you can quantify the interest on income tax refund which you received in this quarter.
Satyanarayana Raju, MD and CEO
Sir, it is again around INR 400 crores, sir. ... we are confident that we can recover approximately INR 5,000 crores.
Answered
High priority
Pool of technical write-off assets and M&A financing strategy
Asked by Sushil Choksey
Provided specific pool size and clear strategy on M&A financing.
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Question
You spoke about INR 5,000 to INR 7,000 crores of recovery from technical write-off of assets. As of today, what kind of pool is available at historical value?
Satyanarayana Raju, MD and CEO
71,000 crores, sir. ... We are also eagerly waiting. We are building that capabilities in the bank, sir.
Answered
Medium priority
SMA percentage and use of stake sale proceeds for buffer provisions
Asked by Dixit Joshi
Clarified SMA definition and confirmed buffer provisioning strategy.
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Question
You mentioned 3% of the book as an overall book SMA. So that's SMA 0, 1, and 2 or only 1 and 2?
Satyanarayana Raju, MD and CEO
SMA 0, 1, and 2. All the together is less than 3%, sir. ... we are creating that buffer now itself.
Answered
Medium priority
Impact of RBI gold loan regulation changes on business
Asked by Ramanuj
Provided specific portfolio size and positive outlook on regulatory changes.
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Question
How do you see this impacting our business, sir? Means will it become difficult to give loans or has the process become easier for us?
Satyanarayana Raju, MD and CEO
No, actually that they are very proactive for doing the much better business in the gold loan, sir. ... Our gold loan portfolio is, as on date, it has crossed INR 211,000 crores, sir.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Net profit grew more than 18% year-on-year this quarter | 18% | 18.93% | Matches filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.