Canara Bank shares climbed 1.2% after the bank released its Q2 business update, highlighting a 16.8% YoY increase in domestic advances to ₹12.63 lakh crore and a 15.8% rise in global business to ₹30.71 lakh crore.
Domestic deposits grew 11% YoY to ₹15.48 lakh crore, a solid indicator of retained customer confidence. The bank’s total advances now stand at ₹30.75 lakh crore, up 14.4% from the same period last year.
Analyst Ravi Kumar of Edelweiss Securities noted the domestic advance growth outpaces peers: HDFC Bank’s domestic advances rose 14.3% and Axis Bank’s 12.9% in the same quarter. “Canara’s focus on rural and SME lending is paying off,” he added, pointing to the firm’s 3.2% increase in SME loans.
Looking ahead, CEO Rakesh Sharma said in a board meeting that the bank targets an 8% YoY lift in domestic advances for Q3, supported by an expanded digital payment platform. The next earnings call is scheduled for 22 November, where the market will monitor the bank’s net interest margin and cost‑to‑income ratio for further clues on profitability.