Canara Bank Q4 FY26 profit drops 10%: key numbers

Stock reaction after results

Canara Bank shares fell 3.83% to Rs 129.17 after the lender reported a year-on-year decline in quarterly profit. The move came as the market reacted to a softer Q4 FY26 earnings print and lower reported income for the quarter. The decline highlights how PSU bank results can still trigger sharp near-term reactions, especially when headline profit trends turn negative.

The data points in the reports indicate that profit after tax (PAT) and profit before tax (PBT) both fell around 10% year-on-year in Q4 FY26. Investors also tracked income movement, with one set of numbers showing a decline in total income.

Q4 FY26: Profit and income reported lower YoY

One report said Canara Bank’s standalone net profit declined 9.93% to Rs 5,002.66 crore in Q4 FY26, alongside a 1.84% decline in total income to Rs 36,662.21 crore. It also stated that profit before tax slipped 10.63% year-on-year to Rs 5,765.57 crore for the quarter.

At the same time, other published numbers in the provided material show different profit figures for the March 2026 quarter. Another report said that for Q4 FY26, the PSU lender posted net profit of Rs 4,506 crore compared with Rs 5,004 crore in Q4 FY25. A separate line item also stated that net profit declined 9.78% to Rs 4,574.23 crore for the quarter ended March 2026, and that total operating income rose 1.09% to Rs 31,838.54 crore.

Because these figures appear in the source text as-is, the key takeaway is that multiple summaries of the quarter pointed to a YoY profit decline in Q4 FY26, with income trends mixed depending on the line item cited (total income vs total operating income).

FY26 full-year profit: growth reported, but numbers vary

For the fiscal year ended March 2026, one report stated that Canara Bank’s net profit rose 12.7% to Rs 19,187 crore, compared with Rs 17,027 crore as at the end of March 2025. The same material also said the bank declared a dividend of Rs 4.2 per share.

However, another set of annual numbers in the text reported full-year net profit rising 1.90% to Rs 17,872.88 crore in FY26 from Rs 17,539.62 crore in FY25. It also reported total operating income rising 3.92% to Rs 1,26,371.20 crore in FY26 from Rs 1,21,601.12 crore in FY25.

In short, the provided information contains more than one set of full-year profit numbers, but both versions indicate FY26 net profit increased over FY25.

Dividend: Rs 4 and Rs 4.2 per share mentioned

The source text includes two different dividend figures. One part of the material said the bank declared a dividend of Rs 4.2 per share. Another section covering an earlier period noted the board recommended a final dividend of Rs 4 per share on a face value of Rs 2. Separately, the text also mentioned Canara Bank declared a dividend of Rs 4.00 on 13 Jun, 2025.

These dividend references matter for shareholders because PSU bank payouts are closely tracked after results, but the exact figure depends on which period and announcement is being referenced in the source.

Context from Q4 FY25: stronger profitability and improving asset quality

The provided material also includes detailed Q4 FY25 numbers, showing a strong year-on-year improvement in that quarter. It said Canara Bank posted a 33.15% YoY increase in net profit to Rs 5,002.66 crore in Q4 FY25 versus Rs 3,757.23 crore in Q4 FY24.

It further stated that total interest income grew 7.62% YoY to Rs 31,002.04 crore, while net interest income (NII) declined 1.44% YoY to Rs 9,442 crore. Net interest margin narrowed to 2.80% from 3.05% YoY, pointing to margin pressure even as profits rose.

On operating performance, operating profit was reported up 12.14% YoY to Rs 8,284 crore, while provisions declined 9.64% YoY to Rs 3,280 crore. Asset quality metrics improved, with gross NPA at 2.94% (from 4.23% YoY) and net NPA at 0.70% (from 1.27% YoY), while PCR increased to 92.70% (from 89.10% YoY).

Balance sheet scale: advances, deposits, and global business

The same Q4 FY25 summary reported global gross advances rose 11.74% YoY to Rs 10.73 lakh crore (Rs 10,73,000 crore), and global deposits increased 11.01% YoY to Rs 14.56 lakh crore (Rs 14,56,000 crore).

Another operational snapshot in the text (as at September 2025) said global business increased 13.55% YoY to Rs 26,78,963 crore, global deposits increased 13.40% YoY to Rs 15,27,922 crore, and global advance (gross) increased 13.74% YoY to Rs 11,51,041 crore.

These scale indicators provide context for how incremental changes in margins, provisioning, and asset quality can materially affect reported profit.

Key reported figures at a glance

Market impact and why investors focused on Q4

The immediate price decline suggests the market prioritised the quarter’s profit trend. A YoY profit drop in Q4 FY26 stood out against the prior-year Q4 FY25 context, when the bank had reported strong profit growth and improved asset quality metrics.

The mix of income metrics in the material also shows what investors typically scrutinise. Total income decline and/or modest operating income growth can lead to questions around the durability of earnings momentum, especially when margins are a key driver in banking.

What to track next

The material also refers to “moderate FY26 growth and NPA guidance” in the context of the bank’s communications, without providing specific targets. For investors, the next steps typically involve tracking updated management commentary, subsequent quarterly margin trends, and the trajectory of asset quality and provisioning.

For now, the headline from the provided information is clear: Canara Bank’s Q4 FY26 profit was reported lower year-on-year in multiple summaries, the stock fell on the day, and FY26 full-year profit growth and dividend declarations were also reported.