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Informist, Monday, Jul. 27, 2026

 

--Canara Bank: Sanctioned INR 110 bln loans under emergency credit line 

--CONTEXT: Canara Bank management comments at post-earnings analysts call 

--Canara Bk: See good traction for loans in corporate segment 

 

By J. Navya Sruthi and Shweta

 

MUMBAI/NEW DELHI – Canara Bank has disbursed INR 100 billion in loans under the government's emergency credit line guarantee scheme 5.0 to support micro, small, and medium enterprises, Managing Director and Chief Executive Officer Brajesh Kumar Singh said Monday. In total, the bank has sanctioned INR 110 billion under the emergency credit line, the official told analysts at a post-earnings conference call. 

 

The bank has identified INR 180 billion of total demand for loans under the scheme. Singh said this pick-up in offtake of loans under this scheme also pushed up the bank's total advances.  

 

Banks' advances rose nearly 18% on year to INR 12.93 trillion in the June quarter. The bank's management expects 11-12% loan growth in 2026-27 (Apr-Mar). In the June quarter, the bank reported a net profit of INR 48.56 billion, up over 2% on year and beating analysts' estimate of INR 41.34 billion. 

 

"So the advance in credit growth is going to be robust even in the coming quarters also because of this (emergency credit line scheme)," Singh said. 

 

Singh said loans offtake by companies remained firm, while lending to other segments was largely on target. The management also expects robust credit growth from the corporate segment going forward. "In corporate, we are getting good rates... Within that, I see that the better corporate (companies with higher ratings) has grown much faster than the lower rated corporate," Singh said. He said 86% of the bank's loan book comprises companies rated 'A' and above, and loan offtake by such companies has grown strongly. 

 

Loans to corporates and others rose nearly 14% on year to INR 5.29 trillion in the June quarter and accounted for 41% of the bank's total loan book. Its credit to retail was up nearly 36% on year at INR 3.20 trillion during the quarter.

 

Monday, the bank's shares ended 1.3% higher at INR 127.26 on the National Stock Exchange. The company announced its results during market hours on Monday.

 

Singh also reiterated the bank's guidance for net interest margin at 2.50-2.60% for FY27. "So everybody (other banks) has lost on account of NIM," he said. "But we have protected our NIM, and we have the aspirations and ability to raise it further, even more than 2.6%. But guidance remains at 2.5% to 2.6% considering the very tough and many headwinds in the ecosystem."

 

Its net interest margin in the June quarter was 2.52%, against 2.51% a quarter earlier.  End

 

Edited by Saji George Titus

 

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