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CANBK - Canara Bank

📊 NSE: CANBK 🏢 Banks - Public Sector 📅 Last Updated: 12/13/2025 20:39

📢 Recent Corporate Announcements

Canara Bank Hikes Long-Term MCLR by 10 bps Effective March 12, 2026

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 11 Mar 2026, 05:00 PM

Canara Bank has announced a revision in its Marginal Cost of Funds Based Lending Rate (MCLR) effective from March 12, 2026. While rates for tenors up to one year remain unchanged, the bank has increased its long-term lending rates. Specifically, the two-year MCLR has been raised from 8.85% to 8.95%, and the three-year MCLR has been increased from 8.90% to 9.00%. This adjustment indicates a slight increase in lending yields for longer-duration credit products.

Overnight to One-Year MCLR rates remain unchanged, with the One-Year rate at 8.70%.
Two-Year MCLR increased by 10 basis points from 8.85% to 8.95%.
Three-Year MCLR increased by 10 basis points from 8.90% to 9.00%.
The revised rates are scheduled to take effect from March 12, 2026.

💡 Investors should view this as a routine operational adjustment that may slightly benefit Net Interest Margins (NIM) on long-term loans. No immediate portfolio changes are recommended based on this update alone.

ICRA Reaffirms Canara Bank’s AAA Rating; Enhances CD Limit to Rs 20,000 Crore

🟢 POSITIVE ⭐ 7/10

ROUTINE 📅 09 Mar 2026, 05:09 PM

ICRA has reaffirmed Canara Bank's top-tier ratings, including [ICRA]AAA for Tier II bonds and [ICRA]AA+ for Tier I bonds, while doubling the Certificate of Deposit limit to Rs 20,000 crore. The bank maintains a strong market position as India's fourth-largest public sector bank with a healthy 1.12% Return on Assets (RoA) for 9M FY26. Asset quality has shown significant improvement, with Gross NPAs dropping to 2.08% and Net NPAs at a low 0.45% as of December 2025. Capital adequacy remains robust with a CRAR of 16.50%, providing a comfortable cushion for future growth.

Reaffirmed [ICRA]AAA(Stable) for Rs 11,500 Cr Tier II bonds and [ICRA]AA+(Stable) for Rs 11,000 Cr Tier I bonds
Enhanced Certificate of Deposit rating limit to Rs 20,000 crore from Rs 10,000 crore with [ICRA]A1+ rating
Gross NPA improved to 2.08% in Dec 2025 from 3.34% in Dec 2024, while Net NPA fell to 0.45%
Capital Adequacy Ratio (CRAR) remains strong at 16.50% with CET I at 12.37% as of Dec 2025
Reported a healthy 9M FY2026 Return on Assets (RoA) of 1.12% with a PAT of Rs 14,681 crore

💡 The reaffirmation of high-grade ratings and sharp improvement in asset quality reinforce the bank's fundamental strength. Investors should view the bank's robust capital position and improving profitability as positive indicators for long-term stability.

Canara Bank Pays Rs 80.70 Crore Annual Interest on Basel III Tier 1 Bonds

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 04 Mar 2026, 03:37 PM

Canara Bank has successfully processed the annual interest payment for its Basel III compliant Additional Tier 1 (AT1) bonds. The total interest amount disbursed is Rs 80.70 crore against an issue size of Rs 1,000 crore. The payment was executed on the scheduled due date of March 4, 2026, through various electronic modes. This timely fulfillment of debt obligations underscores the bank's stable liquidity and strong credit profile.

Annual interest payment of Rs 80.70 crore completed on March 4, 2026
Payment pertains to Basel III Compliant AT1 Bonds with an issue size of Rs 1,000 crore
The implied annual interest rate for this bond series (ISIN: INE476A08159) is 8.07%
The record date for the interest payment was February 17, 2026

💡 No action is required as this is a routine disclosure of debt servicing. It confirms the bank's ability to meet its financial commitments on time.

Canara Bank Updates Insider Trading Code of Conduct Effective April 1, 2026

🟡 NEUTRAL ⭐ 3/10

REGULATORY 📅 04 Mar 2026, 02:03 PM

Canara Bank has announced a revised 'Code of Conduct for Prohibition of Insider Trading' which will be effective from April 1, 2026. The update follows a review conducted in accordance with SEBI (Prohibition of Insider Trading) Regulations, 2015. This is a routine regulatory filing aimed at ensuring the bank remains compliant with the latest market governance standards. The full text of the updated code has been made available on the bank's official website for public review.

Updated Code of Conduct for Prohibition of Insider Trading to take effect on April 1, 2026
Review conducted as per SEBI (Prohibition of Insider Trading) Regulations, 2015
The bank has published the revised policy on its official website for transparency
Announcement made to exchanges on March 4, 2026, following internal review

💡 No immediate action is required as this is a routine regulatory update. It reflects the bank's adherence to corporate governance and SEBI compliance norms.

Canara Bank Raises Rs 5,000 Crore via Basel III Compliant Tier II Bonds at 7.24% Coupon

🟢 POSITIVE ⭐ 7/10

FUNDRAISE 📅 27 Feb 2026, 05:27 PM

Canara Bank has successfully raised Rs 5,000 crore through the issuance of Basel III compliant Tier II bonds to strengthen its capital base. The issue consisted of a base size of Rs 2,000 crore and a green shoe option of Rs 3,000 crore, both of which were fully utilized. These unsecured, subordinated bonds carry a coupon rate of 7.24% and have a maturity period of 10 years. The capital raised will help the bank maintain a healthy Capital Adequacy Ratio (CAR) and support future credit growth.

Total amount raised is Rs 5,000 crore, including a green shoe option of Rs 3,000 crore
The bonds carry a coupon rate of 7.24% per annum, payable annually
Tenure of the bonds is 10 years with a call option available after 5 years
The issue was allotted to 12 investors on February 27, 2026
Bonds are Basel III compliant, unsecured, subordinated, and will be listed on NSE

💡 Investors should view this as a positive development as it strengthens the bank's Tier II capital and provides a buffer for growth. Monitor the bank's upcoming quarterly results for improvements in the Capital Adequacy Ratio.

Canara Bank Disburses Rs 168 Crore Annual Interest on Basel III Tier 1 Bonds

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 16 Feb 2026, 02:07 PM

Canara Bank has confirmed the timely payment of annual interest for its Basel III Compliant Additional Tier 1 Bonds. The bank paid a total interest amount of Rs 168 crore on an issue size of Rs 2,000 crore. Although the original due date was February 14, 2026, the payment was executed on February 16, 2026, as the due date fell on a holiday. This fulfillment of debt obligations demonstrates the bank's stable liquidity position and adherence to regulatory timelines.

Annual interest payment of Rs 168 crore successfully credited to bondholders.
The payment pertains to Basel III Compliant Additional Tier 1 Bonds with an issue size of Rs 2,000 crore.
Actual payment date was February 16, 2026, following a holiday on the scheduled due date of February 14.
The bonds (ISIN: INE476A08225) are perpetual, unsecured, and subordinated in nature.

💡 This is a routine disclosure confirming the bank's ability to service its debt. No immediate action is required for equity investors as this reflects standard operational compliance.

Canara Bank Receives 'IND AAA/Stable' Rating; New INR 50 Billion Tier 2 Rating Assigned

🟢 POSITIVE ⭐ 7/10

ROUTINE 📅 13 Feb 2026, 06:58 PM

India Ratings & Research has affirmed Canara Bank's issuer rating at 'IND AAA' with a stable outlook, reflecting its systemic importance as India's fourth-largest public sector bank. The agency assigned a new 'IND AAA' rating to INR 50 billion of Basel III Tier 2 instruments while affirming existing ratings for infrastructure and AT1 bonds. The bank's financial profile shows consistent improvement, with Gross NPA falling to 2.08% and Return on Assets (RoA) rising to 1.13% in 9MFY26. However, the bank continues to face challenges with a relatively low CASA ratio of 29.5% and compressed NIMs at 2.50%.

Affirmed 'IND AAA/Stable' issuer rating and assigned 'IND AAA' to new INR 50 billion Tier 2 bonds.
Asset quality improved significantly with Net NPA dropping to 0.45% and Gross NPA to 2.08% as of December 2025.
Return on Assets (RoA) improved to 1.13% in 9MFY26, up from 1.1% in FY25, driven by treasury and recovery income.
Common Equity Tier 1 (CET1) capital improved to 12.37% in 3QFY26 through internal accruals.
Management expects Net Interest Margins (NIM) to recover to 2.75%-2.80% in FY26 from the current 2.50%.

💡 Investors should take confidence in the 'AAA' rating affirmation which underscores the bank's strong solvency and government support. Monitor the bank's progress in improving its CASA ratio and NIM recovery as these will be the primary drivers for future valuation re-rating.

Canara Bank Reports One-Day Nationwide Strike Scheduled for February 12, 2026

🟡 NEUTRAL ⭐ 3/10

ROUTINE 📅 11 Feb 2026, 08:46 PM

Canara Bank has informed the exchanges of a one-day strike called by major bank unions including AIBEA, AIBOA, and BEFI on February 12, 2026. The notice was communicated through the Indian Banks’ Association (IBA) and affects the broader banking sector. While the bank is taking measures to maintain smooth operations, it has cautioned that branch and office functioning may be impacted during this period. Such strikes are relatively common in the public sector banking space and typically result in temporary operational delays rather than long-term financial loss.

One-day strike scheduled by bank unions for February 12, 2026
Participating unions include AIBEA, AIBOA, and BEFI
Notice served via the Indian Banks’ Association (IBA)
Potential disruption to branch and office operations expected during the strike period
Bank is implementing contingency plans for smooth functioning of services

💡 Investors should treat this as a routine operational risk common to PSU banks. No immediate portfolio action is required as one-day strikes rarely impact long-term valuations.

Canara Bank Cuts Overnight and One-Month MCLR by 5 Bps Effective Feb 12, 2026

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 11 Feb 2026, 07:34 PM

Canara Bank has announced a marginal reduction in its short-term lending rates. The overnight MCLR has been revised downward from 7.90% to 7.85%, while the one-month MCLR has decreased from 7.95% to 7.90%. Rates for all other tenors, including the critical one-year MCLR used for most retail loans, remain unchanged at 8.70%. These changes are effective from February 12, 2026, and reflect the bank's current cost of funds management.

Overnight MCLR reduced by 5 basis points to 7.85% from 7.90%
One-month MCLR reduced by 5 basis points to 7.90% from 7.95%
One-year MCLR remains unchanged at 8.70%
Three-year MCLR stays steady at 8.90%
New lending rates are effective starting February 12, 2026

💡 This is a routine operational update with minimal impact on the bank's overall margins. Investors should continue to monitor the bank's quarterly Net Interest Margin (NIM) trends for broader impact.

Canara Bank Redeems AT1 Bonds Worth ₹120 Crore and Pays Interest of ₹9.96 Crore

🟢 POSITIVE ⭐ 4/10

ROUTINE 📅 02 Feb 2026, 04:15 PM

Canara Bank has successfully completed the full redemption of its Basel III compliant Additional Tier 1 (AT1) bonds by exercising a call option on February 2, 2026. The bank paid a total of ₹129.96 crore, which includes the principal amount of ₹120 crore and the final annual interest of ₹9.96 crore. This redemption signifies the bank's proactive capital management and healthy liquidity position. Following this payment, the outstanding amount for this specific bond series (ISIN: INE476A08118) is now nil.

Full redemption of 1,200 Basel III AT1 Bonds via Call Option exercise
Total payout of ₹129.96 crore including principal and annual interest
Principal amount redeemed totals ₹120 crore
Annual interest payment of ₹9.96 crore successfully processed on due date
Outstanding amount for ISIN INE476A08118 reduced to zero

💡 Investors should view this as a routine but positive sign of the bank's financial health and ability to manage its capital structure effectively. No immediate action is required as this is a standard debt servicing event.

Canara Bank Q3 FY26: Net Profit Surges 25.6% YoY to ₹5,155 Cr; Asset Quality Improves Significantly

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 30 Jan 2026, 08:08 PM

Canara Bank reported a robust Q3 FY26 with net profit growing 25.61% YoY to ₹5,155 crore, supported by a 13.59% growth in global advances. Asset quality improved significantly with GNPA dropping to 2.08% and Net NPA to 0.45%, while the Provision Coverage Ratio (PCR) reached a healthy 94.19%. Despite a slight 2 bps contraction in NIM due to repo rate cuts, management expects margins to stabilize between 2.45% and 2.50% driven by strong RAM (Retail, Agri, MSME) credit growth of 18.7%.

Net profit increased 25.61% YoY to ₹5,155 crore with Return on Assets (RoA) improving to 1.13%.
Retail credit led growth with a 31.37% YoY increase, while MSME credit grew by 13.74%.
Asset quality strengthened as GNPA fell 126 bps YoY to 2.08% and slippage ratio stood at a low 0.64%.
Total SMA levels reduced significantly from ₹43,917 crore to ₹35,604 crore YoY.
Management estimates a manageable ECL transition impact of ₹10,000 crore, amortizable over 4 years.

💡 Investors should take confidence in the bank's superior asset quality and industry-leading slippage ratios. The stock remains a strong play in the PSU banking space given its robust retail momentum and potential value unlocking from subsidiary IPOs.

Canara Bank Releases Q3 FY 2025-26 Earnings Conference Call Recording

🟡 NEUTRAL ⭐ 4/10

EARNINGS 📅 29 Jan 2026, 07:23 PM

Canara Bank has informed the exchanges that the audio and video recording of its earnings conference call for the third quarter and nine months ended December 31, 2025, is now available. The call was conducted on January 29, 2026, following the release of the bank's unaudited financial results. This disclosure is a routine regulatory requirement under SEBI LODR Regulations to ensure transparency for all stakeholders. Investors can access the recording through the bank's official website to hear management's commentary on performance and future outlook.

Earnings conference call conducted on January 29, 2026, at 4:00 PM IST.
Discussion focused on Unaudited Financial Results for Q3 and Nine Months ended December 31, 2025.
Audio/Video recording link provided for public access on the bank's website.
Compliance with Regulations 30 and 46 of SEBI (LODR) Regulations, 2015.

💡 Investors should listen to the recording to gain qualitative insights into the bank's asset quality trends and margin guidance provided by the management. This is a routine disclosure and does not contain new financial data beyond what was already reported in the results.

Canara Bank Reports Nil Deviation in Utilization of ₹3,500 Crore Raised via AT1 Bonds

🟡 NEUTRAL ⭐ 4/10

REGULATORY 📅 29 Jan 2026, 01:50 PM

Canara Bank has submitted its statement of deviation for the quarter ended December 31, 2025, as required by SEBI regulations. The bank confirmed that there was no deviation or variation in the use of funds raised through the private placement of Basel III AT 1 bonds. Specifically, the bank raised ₹3,500 Crores on December 2, 2025, and the entire amount has been fully utilized for its intended purposes. This routine disclosure confirms the bank's adherence to its stated financial objectives and regulatory compliance.

Raised ₹3,500 Crores through Private Placement of Basel III AT 1 Series I bonds on December 2, 2025.
Reported NIL deviation or variation in the utilization of proceeds for the quarter ended December 31, 2025.
The entire ₹3,500 Crores raised has been fully utilized as per the objects of the issue.
Compliance filing submitted under Regulation 32(1) and 52(7) of SEBI (LODR) Regulations, 2015.

💡 No immediate action is required as this is a routine regulatory confirmation of fund utilization. It reflects positively on the bank's transparency and disciplined capital management.

Canara Bank Confirms Compliance for Rs 50,423 Crore Unsecured Debt in Q3 FY26

🟡 NEUTRAL ⭐ 4/10

ROUTINE 📅 29 Jan 2026, 01:31 PM

Canara Bank has filed its Security Cover Certificate for the quarter ended December 31, 2025, as per SEBI regulations. The bank's statutory auditor, M/s K Venkatachalam Aiyer & Co., has certified that the bank is in full compliance with all covenants for its listed unsecured debt. The total outstanding amount for these securities, which include Basel III Tier I, Tier II, and Long Term Bonds, stands at Rs 50,423 crore. Since the debt is unsecured, the security cover requirement is not applicable, resulting in a 'NIL' report as per regulatory standards.

Total outstanding listed unsecured debt securities amount to Rs 50,423 crore as of December 31, 2025.
The debt portfolio includes Rs 17,523 crore in Basel III AT1 bonds and Rs 12,900 crore in Tier II bonds.
Long Term Bonds (LTB) account for Rs 20,000 crore of the total listed unsecured debt.
Statutory Central Auditor certified that the bank has complied with all terms and covenants of the debt issues.
Security cover is reported as NIL because all listed debt instruments are unsecured by nature.

💡 This is a routine regulatory filing that confirms the bank's adherence to debt covenants and transparency. No immediate impact on the stock price is expected, but it reaffirms the bank's disciplined management of its debt obligations.

Canara Bank Q3 Net Profit Jumps 25.6% YoY to ₹5,155 Cr; Asset Quality Improves Significantly

🟢 POSITIVE ⭐ 8/10

EARNINGS 📅 29 Jan 2026, 01:19 PM

Canara Bank reported a strong performance for Q3 FY26, with net profit rising 25.61% YoY to ₹5,155 crore. Asset quality showed significant improvement, with the Gross NPA ratio dropping to 2.08% from 3.34% a year ago and Net NPA reaching a low of 0.45%. The bank's loan book grew by 13.59% YoY, driven by a robust 31.37% growth in retail lending. Capital adequacy remains healthy at 16.50%, providing a solid cushion for future expansion.

Net Profit grew 25.61% YoY to ₹5,155 Cr, while Operating Profit rose 16.36% to ₹9,119 Cr.
Asset quality improved sharply with GNPA at 2.08% and NNPA at 0.45%, down from 3.34% and 0.89% YoY respectively.
Global Advances increased 13.59% YoY to ₹11.92 lakh Cr, led by 31.37% growth in the Retail segment.
Provision Coverage Ratio (PCR) strengthened to 94.19%, an improvement of 293 bps YoY.
Capital Adequacy Ratio (CRAR) stood at 16.50% with a healthy CET1 of 12.37%.

💡 The bank shows strong operational momentum and superior asset quality management, making it a top performer among PSU peers. Investors should maintain a positive outlook given the double-digit growth in high-yield retail segments and declining credit costs.

View All CANBK Announcements on Live Market Tracking →

💰 Financial Performance

Revenue Growth by Segment

Advances grew 14% YoY in Q2 FY26, with a specific increase of INR 55,000 Cr in the quarter. Retail advances grew to INR 211,000 Cr from INR 195,000 Cr in the previous quarter (approx. 8.2% QoQ). Corporate sanction pipeline stands at INR 50,000 Cr to INR 55,000 Cr.

Geographic Revenue Split

Not disclosed in available documents, though the bank operates as the 4th largest Public Sector Bank in India with international presence in Tanzania.

Profitability Margins

Net Profit grew by more than 18% YoY in Q2 FY26. Net Interest Margin (NIM) moderated to 1.82% in FY25 from 1.97% in FY24 and further declined to 1.63% in Q1 FY26 due to interest spread compression. Return on Assets (RoA) stood at 1.12% (annualized) in Q1 FY26 compared to 1.08% in FY25.

EBITDA Margin

Core operating profitability as a percentage of Average Total Assets (ATA) was 1.63% in Q1 FY26, down from 1.82% in FY25. Net Profit for FY26 is expected to exceed INR 20,000 Cr, up from INR 17,027 Cr in FY25 (approx. 17.5% projected growth).

Capital Expenditure

The bank is investing in a new comprehensive technology platform for Canara Bank Securities Limited and plans to inject fresh capital into the subsidiary to strengthen its capital market presence.

Credit Rating & Borrowing

Reaffirmed [ICRA]AAA (Stable) for Basel III Tier II bonds (INR 8,900 Cr) and [ICRA]AA+ (Stable) for Basel III Tier I bonds (INR 7,500 Cr). Certificates of Deposit assigned [ICRA]A1+ (INR 10,000 Cr). Yield on investments increased slightly from 6.88% to 6.90%.

⚙️ Operational Drivers

Raw Materials

Not applicable for banking; primary 'raw material' is deposits. Total deposits market share is 6.4% as of March 2025. Retail deposits form the core of the robust franchise.

Capacity Expansion

Current market share is 5.8% in net advances and 6.4% in total deposits. The bank is expanding its digital interface and revamping its securities subsidiary to capture more capital market business.

Raw Material Costs

Cost of funds is impacted by the shift toward digital banking and competitive retail deposit pricing. Credit costs remained manageable at 0.55% of ATA in Q1 FY26, down from 0.69% in FY24.

Manufacturing Efficiency

Capacity utilization is reflected in the SMA (Special Mention Accounts) position, where SMA 0, 1, and 2 combined are now less than 3% of the total book, down from approximately 5%.

Logistics & Distribution

Distribution is driven by digital STP (Straight Through Processing) and a physical branch network; digital investments are aimed at reducing operating costs.

📈 Strategic Growth

Expected Growth Rate

14%

Growth Strategy

Achieving growth through a 14% expansion in advances, focusing on a 60:40 RAM (Retail, Agri, MSME) to Corporate mix. Strategy includes unlocking value in subsidiaries (Canara HSBC Life and Canara Robeco AMC stake sales for INR 2,150 Cr in Q3 FY26) and entering M&A financing within one quarter.

Products & Services

Retail loans, corporate credit, agricultural financing, MSME loans, savings/current accounts, term deposits, life insurance, asset management, and securities trading.

Brand Portfolio

Canara Bank, Canara Robeco, Canara HSBC Life Insurance, Canara Bank Securities Limited, Can Fin Homes.

New Products/Services

M&A (Merger and Acquisition) financing is a new focus area with a policy being drafted; expected to be active within one quarter to capture AAA-rated transactions.

Market Expansion

Focusing on revamping Canara Bank Securities Limited with a new technology platform to capture the growing corporate and capital market segment.

Market Share & Ranking

4th largest Public Sector Bank and 6th largest bank in the Indian financial system by total business.

Strategic Alliances

Joint ventures include Canara HSBC Life Insurance (36.5% stake) and Canara Robeco AMC (38% stake) following the October 2025 stake reduction.

🌍 External Factors

Industry Trends

The industry is shifting toward the Expected Credit Loss (ECL) framework (mandatory by April 1, 2027). Canara is positioning itself by creating advance buffers from current comfortable profits to minimize future impact on CRAR.

Competitive Landscape

Competes with other large PSBs (SBI, PNB, BoB) and private banks. Currently maintains a 5.8% market share in net advances.

Competitive Moat

Durable moat through sovereign ownership (Government of India support) and a robust retail deposit franchise (6.4% market share). This provides a low-cost funding base that is sustainable due to the bank's legacy and scale.

Macro Economic Sensitivity

Highly sensitive to RBI policy rates; expected rate cuts are projected to put pressure on NIMs. MSME and retail borrowers are sensitive to macroeconomic shocks and overleveraging.

Consumer Behavior

Increasing shift toward digital banking and capital market participation (demat accounts), prompting the bank to revamp its securities subsidiary.

Geopolitical Risks

Geopolitical issues are cited as a monitorable risk that could adversely impact asset quality metrics and borrower repayment capacity.

⚖️ Regulatory & Governance

Industry Regulations

Transition to ECL framework by April 2027 is the primary regulatory shift. The bank maintains a CET1 ratio of 12.21%, well above the regulatory minimum.

Environmental Compliance

Indirect exposure to environmental risks through the loan portfolio; businesses facing climate transition risks could impact the bank's credit risk.

Taxation Policy Impact

The bank manages tax refunds efficiently; NIM is monitored both with and without IT refund adjustments.

Legal Contingencies

The bank manages a technical write-off portfolio of INR 71,000 Cr; specific pending court case values for labor or consumer disputes are not disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The impact of the ECL framework implementation on capital position and the seasoning of the loan book following high growth years (14% YoY) are key uncertainties.

Geographic Concentration Risk

Primarily concentrated in India; 4th largest PSB with a nationwide footprint.

Third Party Dependencies

Dependency on technology vendors for the new 'comprehensive platform' for the securities subsidiary and digital banking STP.

Technology Obsolescence Risk

Risk of falling behind in digital banking; mitigated by ongoing investments in STP and revamping subsidiary technology platforms.

Credit & Counterparty Risk

NNPA/Core Capital improved to 7.29% from 14.2% YoY, indicating significantly reduced counterparty risk. SMA 1 and 2 levels have 'drastically' come down.