Canara Bank's credit ratings reaffirmed by ICRA, outlook stable

Canara Bank announced that ICRA, a credit rating agency, has reaffirmed and assigned ratings for its various financial instruments as of October 30, 2025. The Basel III Tier I Bonds (INR 7,500.00 crore) were reaffirmed at [ICRA]AA+(Stable), while new Basel III Tier I Bonds (INR 3,500.00 crore) were assigned [ICRA]AA+(Stable). The Basel III Tier II Bonds (INR 8,900.00 crore) and Certificates of Deposit (INR 10,000.00 crore) also saw their ratings reaffirmed at [ICRA]AAA(Stable) and [ICRA]A1+ respectively.

ICRA's rationale highlights Canara Bank's sovereign ownership, strong market share (5.8% in net advances and 6.4% in total deposits as of March 31, 2025), and robust profitability. The bank's CET I and Tier I capital stood at 12.29% and 14.58%, respectively, as of June 30, 2025, maintaining a buffer over regulatory ratios. Profitability remained healthy with an annualised return on assets (RoA) of 1.12% in Q1 FY2026.

The bank's asset quality continued to improve, with gross NPA declining to 2.69% as of June 30, 2025, from 4.14% on June 30, 2024. Canara Bank's well-developed deposit franchise and strong liquidity position, with a liquidity coverage ratio of 144.2% in Q1 FY2026, further support the stable outlook on its ratings.