Bengaluru, May 11, 2026, 13:45 IST
Canara Bank posted a 9.9% drop in standalone profit for the fourth quarter on Monday. Lower provisions helped, but softer operating profit dragged the bottom line, even as the bank managed to improve both its core lending income and bad-loan ratios. With these numbers, attention turns again to margins and asset quality for public-sector banks heading into FY27.
Loan growth continues to outpace deposits, a dynamic that gives a lift to revenue yet also pushes up funding costs. Canara Bank reported a 15.3% jump in global advances to ₹12.38 lakh crore from a year earlier; deposits, meanwhile, climbed 9.7% to ₹15.69 lakh crore. The global net interest margin came in at 2.51%—still short of the bank’s FY26 goal of 2.75%-2.80%.
Results dropped during a packed reporting period for the state-run banks. Bank of Baroda, which rivals the lender, logged an 11.2% jump in consolidated profit for the March quarter, alongside 9% net interest income growth. State Bank of India beat profit forecasts but still watched its shares slip—margin pressure and a softer operational showing weighed on sentiment.
Canara Bank reported a standalone net profit of ₹4,505.57 crore, down from ₹5,002.66 crore in the same period last year. Net interest income edged up 3.9% to ₹9,808 crore, compared with ₹9,442 crore a year earlier.
Pre-provision operating profit slipped 18.4% to ₹6,757.38 crore, down from ₹8,283.67 crore. Other income also took a hit, declining to ₹4,824.36 crore compared to ₹6,350.76 crore in the same period last year. Provisions, excluding tax, eased to ₹991.81 crore versus ₹1,831.71 crore.
Asset quality improved. Gross non-performing assets dropped to 1.84% of advances, down from 2.08% in December and 2.94% a year ago; net NPA ratio slipped to 0.43%, compared to 0.45% the previous quarter.
But there’s a catch. Fresh slippages jumped to ₹2,771 crore for the March quarter, up from ₹1,857 crore in December. Despite that bump, the annualized slippage ratio for the year landed at 0.69%, a 21 basis points improvement from last year. Looking out to FY27, Canara Bank is guiding for a slippage ratio of 0.80% and a credit cost of 0.75%—both higher than the FY26 actual credit cost figure of 0.59%.
The board has put forward a ₹4.20 dividend per equity share—210% of the ₹2 face value—for FY26, pending shareholder approval at the AGM. According to the filing, the board meeting wrapped up at 12:55 p.m. local time.
Standalone net profit for the full year climbed 12.69% to ₹19,187 crore. Operating profit also moved higher, up 5.19% at ₹33,019 crore. Global business stood at ₹28.06 lakh crore, showing a 12.11% increase from the previous year.
The loan book is still skewed toward the quicker-expanding retail and smaller-ticket categories. According to Canara Bank, RAM credit—which includes retail, agriculture, and MSME lending—jumped 19.73% from a year earlier to ₹7.31 lakh crore. Retail lending posted a 32.93% increase, while housing loans climbed 17.55% and vehicle loans came in higher by 26.33%.
The bank is aiming for global advances growth between 11% and 12% for FY27, with deposits seen rising 9% to 10%. Net interest margin guidance landed at 2.50%-2.60%. Gross NPA is pegged at 1.50%, while net NPA is set at 0.40%. So, loan growth projections remain solid, though margin leeway could stay tight if deposit costs don’t ease up.
Canara Bank slipped after posting its results, changing hands at ₹131.73 on the National Stock Exchange. That’s down from its prior close at ₹134.34. Shares swung between ₹130.50 and ₹139.40 in intraday moves.
