RAM to outpace corporate lending in next two quarters: Canara Bank CEO

 Satyanarayana Raju, MD & CEO, Canara Bank

Canara Bank’s Managing Director and CEO Satyanarayana Raju anticipates stronger growth in Retail, Agriculture, and MSME (RAM) lending compared to corporate credit during the next six months.

“Our strategic target maintains a 60:40 ratio favoring RAM over corporate lending,” Raju emphasized. “We won’t compromise profitability by entering corporate rate wars or sacrificing margins for portfolio expansion. Prudence remains our guiding principle.”

He clarified this board-mandated approach, initiated three years ago, aims to systematically elevate RAM’s contribution to 60% of the lending mix. “Execution remains aligned with this vision, ensuring RAM consistently drives portfolio expansion ahead of corporate segments,” Raju affirmed.

Fund raise

Regarding capital plans, Raju confirmed a ₹9,500 crore fundraising initiative will conclude in the latter half of the current fiscal year.

The June 2025 board approval outlines ₹6,000 crore through Basel III Tier II bonds and ₹3,500 crore via Additional Tier I (AT1) instruments for FY26.

Raju highlighted recent GST reductions have accelerated auto loan growth to approximately 25% annually. “Year-on-year vehicle financing has more than doubled. The GST revision’s stimulative effect is markedly evident here,” he observed.

Canara Bank posted a 19% year-on-year net profit increase to ₹4,774 crore for Q2 FY26, despite a 1.87% dip in net interest income. Domestic deposits reached ₹13,94,999 crore by September 30, 2025, marking 12.62% annual growth from ₹12,38,713 crore. Advances climbed 13.34% to ₹10,81,428 crore against ₹9,54,149 crore year-over-year.

RAM sector credit surged 16.94%, spearheaded by retail’s 29.11% expansion. Housing loans rose 15.25% while vehicle financing increased 25.58% within this segment.

Published on October 31, 2025