Canara Bank closed the financial year 2025-26 on a mixed note. While the bank’s overall business expanded significantly and asset quality showed clear improvement, its net profit took a hit due to losses from market-linked investments.
The bank’s global business grew 12.1% year-over-year, reaching a total of Rs 28,06,226 crore. Loans and advances rose at an even faster pace, climbing 15.3% to Rs 12,37,548 crore. Deposits also moved up by 9.7%, touching Rs 15,68,678 crore. These numbers reflect solid underlying demand for credit and a healthy deposit base heading into the new financial year.
However, the Net Interest Margin, which measures the difference between what the bank earns on loans and what it pays on deposits, slipped to 2.5% from 2.8% in FY25, indicating some pressure on the core lending business.
Profit Falls Despite Revenue Stability
On the earnings side, operating revenue was nearly flat with a marginal 1.1% rise to Rs 31,839 crore. Total revenue, however, fell 9.2% to Rs 36,539 crore. Net profit dropped sharply by 14% to Rs 4,381 crore, compared to Rs 5,097 crore in the same quarter last year. The bank attributed this decline to investment losses caused by changes in market conditions.
One of the brighter spots in the results was asset quality. Gross Non-Performing Assets fell from 2.9% to 1.8%, while Net NPAs came down from 0.7% to 0.4%. This shows the bank has made meaningful progress in cleaning up its loan book.
Canara Bank’s management has guided for a conservative 11-12% loan growth in FY27. The bank expects its Net Interest Margin to stabilise between 2.50% and 2.60% in the coming year. Capital Adequacy Ratio stands at a healthy 17.04%, giving the bank a strong buffer. Management also noted that no fresh stress is building up in the loan book, with slippages expected to remain at similar levels to last year.
The bank has also announced a final dividend of Rs 4.2 per share for FY26.
