Canara Bank is stepping up efforts to strengthen its low-cost deposit base

Canara Bank is stepping up efforts to strengthen its low-cost deposit base and reduce its reliance on bulk deposits, while pursuing growth in corporate lending.

The bank has set a near-term target of raising its current account savings account (CASA) ratio to 30-32 per cent to achieve this target during the current financial year. As of June 30, 2026, the public sector bank’s CASA deposit ratio was 29.7 per cent. Cost of deposits of the bank was at 5.27 per cent as of June 30, 2026.

Our priority is to raise low-cost deposits, considering our cost of deposits is a little high, and the CASA percentage is a little low. Our dependency on bulk deposits is also greater. So, the focus will be to grow retail deposits and low-cost deposits,” managing director and chief executive officer Brajesh Kumar Singh told media.

"Individual savings bank deposits of the bank grew over 12 per cent despite a challenging market, he said, adding that the bank was focusing on seeking customers for whom Canara Bank would become the primary banking relationship.

The bank’s CASA ratio is currently below 30 per cent, compared with more than 35 per cent for some peers, resulting in a relatively higher cost of deposits, Singh said.

Canara Bank is also looking to raise around $2.3-2.5 billion through foreign currency non-resident (bank) deposits, external commercial borrowings and overseas foreign currency bonds. "We can better this number as we are already seeing good traction,” Singh said.

The bank’s board has approved an enabling resolution to raise ₹8,500 crore through tier-I and tier-II bonds. The lender will tap the market at an opportune time, Singh said.

Digital adoption among customers will be another key focus area. Canara Bank plans to spend more than ₹3,000 crore on information technology during the current year, including investments in digitisation and cybersecurity.

Human resources, with a focus on ethical practices, will also remain a priority, Singh said.

On the corporate credit front, the bank is witnessing healthy demand from sectors such as green finance, power evacuation infrastructure and data centres, besides other infrastructure projects. Canara Bank has a corporate credit pipeline of around ₹50,000 crore and is simultaneously expanding its retail, agriculture and MSME (RAM) loan portfolio