Canara Bank reported an 8% year-on-year increase in net profit to Rs 5,175 crore for the quarter ended September 2026, driven by growth in core interest income, even as a sharp decline in treasury income weighed on non-interest income. Total interest income of the state-run lender rose 11% year-on-year to Rs 35,159 crore in Q2FY27, while interest expenses increased at a slower pace of 8% to Rs 24,154 crore. This helped net interest income (NII) grow 20% to Rs 11,005 crore. Net interest margin expanded 5 basis points to 2.55% during the quarter.