Public sector lender Canara Bank reported a 10% decline in standalone net profit for the March quarter at ₹4,506 crore compared with the corresponding period last year, impacted by lower other income and decline in operating profit.
Interest income increased 2.7% to ₹31,838 crore, while non-interest income contracted 24% to ₹4,824 crore. Fee-based income, however, rose 8% to ₹2,513 crore.
Net interest income (NII) grew 3.88% to ₹9,808 crore. Net interest margin (NIM) cumulatively declined to 2.51% from 2.90% in the year-ago period.
Operating profit declines
Operating profit declined 18% to ₹6,758 crore during the quarter. Despite pressure on profitability, Canara Bank reported continued improvement in asset quality metrics.
Gross non-performing asset (GNPA) ratio declined by 110 basis points to 1.84%, while net NPA ratio contracted 27 basis points to 0.43%.
Slippage ratio improved marginally by 2 basis points to 0.24%. Provision Coverage Ratio improved by 151 basis points to 94.21%. The bank’s capital adequacy ratio stood at 17.04%.
Strong business growth
Global business of the bank grew 12% to ₹28,06,226 crore. Global deposits increased 10% to ₹15,68,678 crore, while global advances rose 15% to ₹12,37,548 crore.
RAM (Retail, Agriculture and MSME) credit registered a robust growth of 20% to ₹7,30,520 crore. Retail credit grew 33% to ₹2,96,912 crore, led by housing loans which increased 18% to ₹1,24,799 crore. Vehicle loans rose 26% to ₹26,070 crore. Agriculture advances increased 12% to ₹2,75,777 crore, while MSME credit rose 13% to ₹1,57,831 crore.
Dividend declared
The board of Canara Bank recommended a dividend of ₹4.20 per share for FY26. June 12, 2026 has been fixed as the record date for payment of dividend to eligible shareholders.