Public sector lender Canara Bank is betting on strong credit growth, driven by goods and services tax (GST) rate cuts and lending to rural infrastructure in the second half of the financial year, even as it continues to strengthen its asset quality in agriculture loans and maintain profitability momentum, said Managing Director & CEO of Canara Bank during an interaction with Business Standard.
Canara Bank’s net profit grew nearly 19 per cent yearon-year (Y-o-Y) to ₹4,774 crore during the September quarter.
The bank’s credit growth may surpass the guidance of 11 per cent in FY26, with higher consumer spends, in addition greater traction in the retail, agriculture, and MSME segments.
“Whatever we have shown in H1 will continue in H2 also, especially on the credit side,” Raju said. In Q2FY26, the bank’s credit grew around 13 per cent Y-o-Y. However, deposit growth in H2 may moderate slightly to around 10-11 per cent.
On income composition, the Bengaluru-based bank expects both interest and noninterest income to remain supportive. “Our non-interest income has been growing at 8-12 per cent consistently for the past three years, and this year too it will continue at the same level,” he said.
Source from: https://www.business-standard.com/companies/news/canara-bank-credit-growth-h2-2025-125111001654_1.html
