Satyanarayana Raju, MD and CEO, Canara Bank
The RAM (Retail, Agriculture and MSME) sector will grow faster than corporate loans in the next two quarters, says Satyanarayana Raju, MD & CEO, Canara Bank.
“Our strategy is to achieve a 60:40 mix between RAM and business sectors,” said Raju. “We do not want to expand corporate lending at the expense of our bottom line, nor participate in the interest rate war that is eroding profitability. We remain cautious on this front.”
He explained that the bank adopted this board-approved strategy three years ago to shift to a 60 percent focus on the RAM sector. “We are on track and RAM sector growth will consistently outpace corporate growth going forward,” he added.
Fundraising
On capital raising, Raju confirmed that the bank will complete its entire capital raising program of ₹9,500 crore in the second half of the current financial year.
In June 2025, the bank’s board approved a plan to raise up to ₹9,500 crore through Basel III-compliant debt instruments for FY26, including ₹6,000 crore through Tier II bonds and ₹3,500 crore through Additional Tier I (AT1) bonds.
Raju noted that the recent cuts in GST rates have had a positive impact on auto loans, which are now growing at around 25 percent year-on-year. “If we look at the year-on-year growth, auto loans have grown by over 100 percent. The immediate impact of the GST cut is clearly visible in this segment,” he said.
For the second quarter of FY26, Canara Bank reported a 19 percent year-on-year increase in net profit to ₹4,774 crore. However, net interest income (NII) fell by 1.87 percent. Domestic deposits grew 12.62 percent year-on-year to ₹13,94,999 crore as on September 30, 2025, compared to ₹12,38,713 crore a year earlier. Similarly, domestic advances increased by 13.34 per cent from ₹ 9,54,149 crore to ₹ 10,81,428 crore.
The bank’s loan portfolio showed robust development in key segments. RAM credit grew by 16.94 percent. Within the retail category, total lending rose 29.11 percent, led by home loans, which grew 15.25 percent, and auto loans, which rose 25.58 percent.
Published on October 31, 2025
#RAM #surpass #corporate #lending #quarters #CEO #Canara #Bank