Desk note · industry · Banking
Managing director Brajesh Kumar Singh told Mint on 20 October 2026 that rising government bond yields could mean mark-to-market provisioning over the next six months, even as the lender expects strong festive demand for housing and vehicle credit after September-quarter net profit rose 8.4% to ₹5,175 crore.
On 20 October 2026, Mint quoted Canara Bank managing director and chief executive Brajesh Kumar Singh on two forces pulling at the lender. Government bond yields have climbed as crude prices and inflation worries linger, and the Reserve Bank of India’s recent rate increase added pressure. Singh said the 10-year benchmark moved from about 6.75% in June to roughly 7.38%, which can reduce the market value of fixed-income securities banks hold and trigger mark-to-market charges depending on accounting buckets. He plans to assess the impact over the next six months and noted any hit would be small relative to a balance sheet near ₹30 trillion. In the September 2026 quarter, Canara reported net profit of ₹5,175 crore, up 8.4% year on year, while net interest income rose 20.39% to ₹11,005 crore. Treasury income slid 68.48% to ₹499 crore and profit on investment sales fell 87.43% to ₹153 crore. Despite that trading pain, Singh said he expects brisk festive-season demand for housing and vehicle loans.
When yields rise, banks earn more on new loans but can book losses on older bonds sitting in available-for-sale portfolios. Public-sector lenders still rely on treasury gains in weak credit cycles, so a yield spike shows up quickly in the P&L even while retail demand is healthy. Singh’s festive loan comment fits broader industry chatter that Diwali footfall is translating into EMI-led purchases. The net story is split: core lending margins benefit from higher rates, securities books take a interim knock.
If you are shopping for a home or car loan this season, compare public-sector bank festive schemes against private lenders, and check whether rates are linked to repo benchmarks that already repriced. Fixed-deposit savers may see slightly better offers as banks hunt stable funding. Equity investors in PSU banks should read treasury line items alongside loan growth, not just net interest margin headlines. Watch the 10-year yield into the RBI’s next policy review and whether Canara redeploys liquidity into shorter-duration paper to limit MTM swings.
Telecom / IPO
On 22 October 2026, exchange data showed Jio Platforms’ ₹30,213 crore issue had drawn about ₹3.73 lakh crore of total bids by late evening on Day 2, with the retail portion oversubscribed and market commentators citing diverted cash from other listed stocks during the book build.
SEBI / market infrastructure
On 22 October 2026, the Securities and Exchange Board of India proposed letting stock exchanges and depositories fund core-market and regulator-mandated initiatives without prior approval for each ticket, while keeping board oversight and financial safeguards and inviting comments until 12 November.
E-commerce / food delivery
On 22 October 2026, reporting said Flipkart is testing an internal food delivery product called Eat-in by Minutes with more than 8,000 employees in Bengaluru, using Ekart logistics as it prepares to compete with Zomato and Swiggy in meal delivery.
Digital trust / compliance
On 22 October 2026, eMudhra Ltd said its board will voluntarily withdraw from the global SSL/TLS certificate segment after a key-security incident on eight intermediate certificates, citing compliance cost and weak economics while stressing that other digital-trust services continue.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.