Canara Bank’s Q2 credit growth rises 19.4%, deposits grow 13.1%

New business data points to the fact that Canara Bank’s credit expansion accelerated in the second quarter, with global advances rising 19.35 percent year-on-year and deposit expansion picking up to 13.13 percent, keeping both key business parameters ahead of the full-year guidance.

Provisional business figures for the September quarter revealed global advances at Rs 13.74 lakh crore, up 19.35 percent YoY and 6.21 percent sequentially.

Global deposits rose 13.13 percent YoY to Rs 16.97 lakh crore, growing 5.31percent sequentially, the bank stated in an exchange filing on October 1.

The expansion rates stay above the targets Canara Bank had set for FY27. In its Q1 earnings call in July, the state-run lender guided for 10-12 percent expansion in advances and 9-10 percent in deposits. Its anticipated global business expansion at 10-11percent.

The Q2 numbers show the lender continuing to run ahead of its full-year expansion assumptions. Global business grew 15.83 percent year-on-year at Rs 30.71 lakh crore, compared with 14.37 percent expansion in Q1 at Rs 29.05 lakh crore.

Domestic business additionally remained robust. Advances grew 16.83 percent YoY to Rs 12.63 lakh crore compared with 16.97percent expansion in Q1 when the loan book stood at Rs 12.07 lakh crore.

Domestic deposits increased 10.96 percent YoY to Rs 15.48 lakh crore, accelerating from around 10.1 percent expansion in Q1.

The retail, agriculture and MSME portfolio continued to grow faster than the loan book. RAM advances increased 21 percent YoY to Rs 8.12 lakh crore, though it was marginally slower than the 21.20 percent in Q1 when the portfolio stood at Rs 7.65 lakh crore.

The sustained pace of loan expansion comes despite the bank’s relatively conservative full-year guidance. In the Q1 call, management stated it anticipated advances to grow 10-12 percent and deposits 9-10 percent during the year. Global business was anticipated to expand 10-11percent.