Canara Bank Q2 FY27: Consolidated PAT ₹5,382 Cr (+6.5% YoY), GNPA improves to 1.33%

Canara Bank's consolidated net profit (after minority interest) came in at ₹5,381.59 Cr for Q2 FY-2027, up 6.5% YoY from the core PAT base of ₹4,865.76 Cr a year ago and up a similar 6.5% QoQ — ahead of the ₹4,900–5,100 Cr band we flagged pre-result and comfortably inside the Street's bullish framing (78.9% Buy ratings, consensus target ₹161.63 against a pre-result price of ₹119.59). Consolidated revenue (interest earned) grew faster, +9.6% YoY to ₹35,161.97 Cr, meaning profit growth trailed topline growth for the second straight quarter on this metric. The margin picture is mixed and is the real story under the headline. Operating profit before provisions, scaled to interest earned, compressed to ~24.9% from 27.1% a year ago and 26.2% last quarter — opex and the interest-expense line grew faster than core income. Net profit margin nonetheless expanded to 12.66% from 11.58% YoY, because provisions (other than tax) fell to ₹1,781.97 Cr from ₹2,354.02 Cr a year ago — a lower credit-cost charge, not stronger core profitability, carried the bottom line this quarter. Annualised credit cost works out to roughly 0.52%, inside management's guided 0.49–0.75% band, and annualised ROA held at 1.05%, above the >1% guidance given on the Q1 FY27 call (29 Jul 2026). Asset quality improved sharply and is the strongest part of the print: consolidated GNPA fell to 1.33% from 2.35% YoY and 1.57% QoQ, with net NPA at 0.30% — well inside the <1.7% watch threshold we and the Street flagged pre-result. Standalone advances grew ~20.4% YoY and deposits ~13.1% YoY, both ahead of or in line with management's stated FY27 credit-growth guidance of 11–12% (a target Canara has now overshot for a second straight quarter) and the ~13% deposit-growth watch item. Provisional global business, already disclosed on 1 October 2026, was up 15.83% YoY to ₹30.7 lakh Cr, matching the quarter's reported numbers. Management gave no fresh press-release commentary in the material filed with this result; the board separately noted the pending sale of its 70% stake in Canbank Factors Ltd (consented 29 August 2026), still awaiting regulatory approval, and the exclusion of the struck-off Canara Bank Tanzania Ltd from consolidation this quarter — neither is a P&L item but both will shape the consolidated base going forward. Net effect: a quarter that beat the conservative pre-result profit and asset-quality bar primarily on lower provisioning and continued NPA cleanup, while core operating margins narrowed — a trend worth tracking into Q3 to see whether provisioning normalises or opex pressure persists.