Canara Bank Stock Climbs to 15-Year Peak as Q2 Profit Jumps 19%

Post by : Bianca Suleiman

Shares of Canara Bank advanced more than 4 percent on Wednesday to close at ₹134.25, marking the highest quote in nearly 15 years after the state-owned lender released robust second-quarter figures for FY26.

The bank reported a net profit of ₹4,774 crore for Q2 FY26, up 19 percent year-on-year from ₹4,014 crore a year earlier. Net interest income contracted by about 2 percent YoY to ₹9,141.19 crore during the quarter.

Asset quality showed clear improvement: the gross non-performing asset ratio fell to 2.35 percent in the September quarter from 3.73 percent a year ago, while the net NPA ratio declined to 0.54 percent from 0.99 percent.

Profitability metrics strengthened as the net profit margin rose to 12.37 percent from 11.56 percent in the prior-year quarter, though it edged down slightly versus 12.48 percent in Q1 FY26. Return on assets improved to 1.12 percent, credit costs eased to 0.68 percent and provisions for the quarter increased to ₹3,814 crore, roughly 5 percent higher year-on-year.

On the trading front, the stock has shown notable momentum—up over 5 percent in the past five sessions and about 7 percent in the last month. Across six months the share price has surged more than 36 percent, and from its 52-week low of ₹78.60 in March 2025 it has climbed nearly 71 percent to reach the present 52-week high.

Overall, stronger earnings, a cleaner balance sheet and renewed investor interest underpin the bank’s upward trend, signalling healthier sentiment across the PSU banking segment.