Canara Bank Q4 Profit Declines 10% To ₹4,506 Crore Despite Lower NPAs, FY26 Profit Crosses ₹19,186 Crore

Mumbai: State-owned Canara Bank reported a 9.9 percent year-on-year decline in standalone net profit to Rs 4,505.57 crore for Q4 FY26, compared with Rs 5,002.66 crore in the corresponding quarter last year.

The bank’s total income also eased to Rs 36,662.21 crore from Rs 37,352.80 crore a year earlier. Sequentially, profit declined from Rs 5,155.11 crore in Q3 FY26. Despite the softer quarterly performance, the lender closed FY26 with improved asset quality and higher annual profitability.

Canara Bank’s operating profit before provisions and contingencies stood at Rs 6,757.38 crore in the March quarter, compared with Rs 8,283.67 crore in Q4 FY25 and Rs 9,119.47 crore in the preceding quarter.

Total expenses during the quarter rose to Rs 29,904.83 crore, while interest expended stood at Rs 22,029.88 crore. Provisions declined sharply to Rs 991.81 crore from Rs 1,831.71 crore in the year-ago period, supporting earnings despite lower operating income.

Sequentially, the bank witnessed moderation in profitability as total income fell 8.1 percent from Rs 39,880.96 crore in Q3 FY26, while operating profit dropped nearly 26 percent. However, asset quality strengthened further with gross non-performing assets ratio improving to 1.84 percent from 2.08 percent in Q3 FY26 and 2.94 percent in Q4 FY25.

Net NPA ratio also improved to 0.43 percent from 0.45 percent sequentially and 0.70 percent a year ago. Provision coverage ratio improved to 94.21 percent as of March 31, 2026.

For the full financial year FY26, Canara Bank posted standalone net profit of Rs 19,186.67 crore, up 12.7 percent from Rs 17,026.67 crore in FY25. Total income for the year increased to Rs 1,53,204.21 crore from Rs 1,42,207.87 crore in the previous fiscal.

Gross advances rose to Rs 12.20 lakh crore as of March-end FY26 against Rs 10.49 lakh crore a year ago, while deposits climbed to Rs 15.69 lakh crore from Rs 14.30 lakh crore.

The bank’s board recommended a dividend of Rs 4.20 per equity share for FY26, subject to shareholder approval. During FY26, the bank also raised Basel III-compliant Additional Tier-I and Tier-II bonds aggregating Rs 8,500 crore.

Disclaimer: This report is based on unaudited/audited quarterly financial filings and is not investment advice.