State-owned Canara Bank on Monday reported a 2% year-on-year (YoY) increase in net profit to Rs 4,856 crore for the first quarter of FY27, compared with Rs 4,752 crore in the corresponding period last year. The lender's net interest income (NII) rose 13% YoY to Rs 10,216 crore from Rs 9,008 crore, the bank said in a regulatory filing. Total NPAs for the quarter under review declined nearly 24% YoY to Rs 1,399 crore from Rs 1,845 crore in the corresponding quarter of the previous financial year. Total provisions also eased 0.6% YoY to Rs 3,780 crore, compared with Rs 3,802 crore in the year-ago period.Gross NPA improved to 1.57% from 2.69% in the same quarter last year, Canara Bank’s investor presentation showed. Net NPA also came in lower at 0.36% from 0.63% posted in the first quarter of the previous fiscal year.Total expenses for the quarter under review stood at Rs 31,048 crore, up over 5% YoY from Rs 29,510 crore. Interest paid on deposits rose 2% YoY to Rs 20,241 crore from Rs 19,834 crore.Canara Bank's global business grew 14.37% YoY to Rs 29 lakh crore as of June 2026. Global deposits increased 11.63% YoY to Rs 16.12 lakh crore, while gross global advances rose 17.97% YoY to Rs 12.93 lakh crore.Domestic deposits stood at Rs 14.73 lakh crore, up 10.06% YoY, while gross domestic advances grew 16.95% YoY to Rs 12.07 lakh crore. RAM credit increased 21.20% YoY to Rs 7.65 lakh crore, while the retail lending portfolio grew 35.88% YoY to Rs 3.20 lakh crore. The housing loan portfolio rose 17.85% YoY to Rs 1.29 lakh crore.As of June 30, 2026, Canara Bank had 10,131 branches, including 3,211 in rural areas, 3,033 in semi-urban locations, 1,994 in urban areas, and 1,893 in metropolitan centres. The bank also operated 11,047 ATMs and cash recyclers, along with four overseas branches in London, New York, Dubai, and the IBU GIFT City branch.Following the earnings announcement, Canara Bank shares gained 3% to Rs 130 on the BSE.