Total domestic deposits increased 11% year-on-year to ₹15.48 lakh crore, compared with ₹13.95 lakh crore a year earlier.
The latest business update comes as the lender steps up its focus on deposits while continuing to see healthy credit demand across key sectors.
Canara Bank sees loan growth ahead of guidance
In the first quarter, Canara Bank MD & CEO Brajesh Kumar Singh had said the lender expected to surpass its 11-12% loan growth guidance for FY27.
The bank is also looking to strengthen its deposit franchise by replacing high-cost bulk deposits with more granular retail deposits. Singh said the credit-deposit ratio had risen from around 75% to 80%, but the focus had now shifted towards deposits.
“We are focusing more on deposits,” Singh said, adding that individual savings bank deposits were growing much faster than the institutional segment.
The bank also expects FCNR inflows and concessional Reserve Bank of India (RBI) swap facilities to help lower funding costs. Credit demand, meanwhile, remains healthy across sectors including power, green energy and data centres.
Canara Bank eyes bigger role in UPI
Earlier, Singh said Canara Bank sees a larger opportunity in the payments business as UPI transactions continue to grow and the economics of the ecosystem improve.
The bank already operates a payment service provider (PSP) platform through its Ai1 app and has a customer base of around 11 crore. This allows it to participate in different parts of the digital payments ecosystem, including as an issuer bank, acquiring bank and PSP.
Singh said banks could become more active in payments once the model becomes commercially viable, with greater monetisation potentially encouraging lenders to invest in new products and services around UPI.
Canara Bank’s capital-raising plan
Separately, Canara Bank said in September that its board had authorised a capital-raising plan of up to ₹4,500 crore through Basel III-compliant Additional Tier 1 (AT-1) bonds and up to ₹4,000 crore through Tier 2 bonds.
The proposed AT-1 bonds will be perpetual debt instruments with a call option after five years, subject to regulatory clearance. The bonds have been rated “AA+; Stable” by ICRA Ratings and India Ratings.