According to reports, the government may merge some large public sector banks by fiscal year 2027. There is talk that Canara Bank may also be included in this next phase.
Canara Bank has responded to these discussions. At a press conference regarding the merger of PSU banks, the Bengaluru-headquartered bank stated that it had not received any information from the government regarding this matter.
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Apart from this, the public sector bank also announced that it plans to raise the entire approved amount of Rs 9,500 crore through bonds in the current financial year, out of which some amount will be raised in the third quarter of FY2026.
Canara bank to merge with any other bank?
Canara Bank recently announced its second-quarter results. The state-owned bank reported a 19% increase in net profit for the second quarter of fiscal year 2026, sending its stock soaring to a 15-year high. Canara Bank’s net profit for the second quarter was ₹4,774 crore, compared to ₹4,014 crore in the same period a year ago. in the quarter under review, with net NPAs (non-performing assets) declining. However, the bank’s net interest income, or NII, declined by 2% to ₹9,141.19 crore in the quarter ended September 30. Furthermore, the gross NPA ratio declined to 2.35% in the second quarter from 3.73% in the same quarter last fiscal, and the net profit margin increased to 12.37% in the July-September period from 11.56% in the same quarter a year ago.
Canara Bank shares rose 4.26% to Rs 134.25 per share after the announcement of its second quarter results. Finally, it closed at Rs 132.89, up 3.30%. In the last one month, Canara Bank shares have gained Rs 12.93 or 10.45%. The price per share on October 1, 2025 was Rs 123.76, while on November 1, 2025, the price per share crossed Rs 136.
The bank’s capital-to-risk-weighted assets ratio (CRAR) declined to 16.20 percent from 16.57 percent. Commenting on the figures, Canara Bank MD & CEO K. Satyanarayana Raju said the bank has sufficient capital to grow its business at this pace and there is no need for additional capital during the current financial year. He said that in the third quarter, CRAR will increase as the bank has monetized two of its subsidiaries – Canara Robeco Mutual Fund and Canara HSBC Life In isurance.