Canara Bank Shares Fall 7% Despite Q2 Profit Growth

Canara Bank shares dropped nearly 7 per cent in early trade Thursday following its Q2FY27 results. Despite an 8 per cent rise in net profit to ₹5,175 crore and a 20 per cent jump in net interest income, investors reacted to a sharp decline in treasury income, which fell to ₹499 crore from ₹1,583 crore year-on-year.

Analysts noted that a higher-than-expected Expected Credit Loss (ECL) transition impact and deposit growth trailing credit growth may weigh on future performance. However, brokerages remain positive, with JM Financial upgrading the stock from 'Add' to 'Buy' based on cheap valuations.

Editor's note: The brief effectively balances the company's financial results with the market reaction and brokerage analysis.