Canara Bank Targets To Lend Rs 55,000 Crore In Corporate Loans This Year

Canara Bank will disburse Rs 50,000 to Rs 55,000 crore of corporate loans this year as part of an initiative to boost its presence in large corporates. The bank aims for a 10 per cent expansion in its corporate loan book, in tandem with its total credit growth target of 10 to 11 per cent for the year.

Canara Bank's managing director and CEO, K Satyanarayana Raju, told The Economic Times that loans for Rs 25,000 to 28,000 crore have already been sanctioned until April, and the remaining has been in principle approved. These loans are to be released in the coming months, depending on further evaluation.

As of March-end, Canara Bank's corporate loan book stood at Rs 4.63 lakh crore, accounting for nearly 43 per cent of its total advances of Rs 10.7 lakh crore. The bank is focusing on sectors such as manufacturing, infrastructure, real estate, and green energy—sectors where loan demand is relatively stable or rising.

Focus on Deposits and Branch Expansion

To drive credit expansion, the bank is also aiming at building a stronger liability base. It is looking to mop up Rs 600 to 750 crore in recurring deposits by the end of this month. According to the bank, this will provide a regular inflow of funds for the next one year.

Bulk deposits, or deposits of over Rs 3 crore in one account, now represent about one-fourth of the bank's total deposit base. These typically bear higher interest rates than retail deposits. On the other hand, the share of low-cost current and savings account (CASA) deposits stood at 31.17 per cent as of March-end, below the earlier guidance of 33 per cent. The bank has now brought its 2025-26 CASA target down to 32 per cent.

For a comparison, Indian Bank had reported CASA of 40.17 per cent whereas Bank of Maharashtra had posted a higher CASA ratio of 53.28 per cent in the same period.

In order to increase its presence, Canara Bank also plans to open 250 new branches in the year, over and above its existing network of 9,849 branches. The bank's board is poised to approve its borrowing plan in the next meeting.

What It Means for Borrowers

The strategy of the bank would translate to easier access to funds for businesses, especially those in sectors with specifically targeted lending. For firms that have current projects or project expansion proposals, this would facilitate improved working capital or long-term loan availability.

The advance of a part of the loans already could decrease turnaround times for disbursals in some cases. However, since the rest of the loan pipeline is still being evaluated, actual access will depend on how borrowers qualify based on Canara Bank's credit criteria.

Such a program would be more favourable to medium and large-scale companies with well-settled financial histories, particularly those in industries prioritised by the bank. Non-priority sector business entities or lower-credit-worthiness entities may not find the process any less inconvenient.