Canara Bank FY26: Strong Growth, Better Asset Quality, Tighter Margin Outlook

Global business was 28,06,226 crore (up 12.11% YoY), global deposits were 15,68,678 crore (up 9.71% YoY), and global advances were 12,37,548 crore (up 15.30% YoY) as of March 31, 2026.

FY26 net profit was 19,187 crore (up 12.69% YoY) and operating profit was 33,019 crore (up 5.19% YoY). Q4 FY26 net profit was 4,506 crore.

Gross NPA was 1.84% and net NPA was 0.43% as of March 31, 2026. Provision coverage ratio was 94.21% and annualized credit cost was 0.59%.

For March 2027, guidance includes global business growth of 10% to 11%, advances growth of 11% to 12%, deposits growth of 9% to 10%, and NIM (annualized) of 2.50% to 2.60%.

Management estimated an overall ECL impact of about 10,000 crore, with the ability to stagger it over four years. They stated that absorbing it in one go could reduce CRAR by about 1%, with CRAR at 17.04% as of March 2026.

Management stated the gold loan portfolio is 2.45 lakh crore, including 1.54 lakh crore agriculture gold and 91,000 crore non-agri. They described controls like periodic reappraisal by different valuers, dedicated officers in high-value branches, and enhanced security and safes.

The bank proposed a dividend of 210% of paid-up capital, which management described as 4.20 per share on face value of 2 per share.