Canara Bank reported strong results in its Q3 FY26 earnings call, showcasing significant growth across key business areas. The bank’s global business reached ₹27.1 lakh crores, with a year-on-year growth of 13.23%. Net profit increased by 25.61% to ₹5,155 crores. The bank exceeded guidance on 11 out of 13 parameters and aims to maintain this strong performance in the coming quarters.
Financial Performance Overview
Canara Bank’s Q3 FY26 earnings call highlighted the bank’s robust financial performance. Key metrics include:
- Global Business: ₹27.1 lakh crores, a 13.23% year-on-year increase.
- Global Deposits: Grew by 12.95% to ₹15.21 lakh crores.
- Global Advances: Increased by 13.59% to ₹11.92 lakh crores.
- Operating Profits: ₹9,119 crores, up 16.36% year-on-year.
- Net Profit: ₹5,155 crores, a substantial 25.61% increase.
- Return on Assets: Improved to 1.13%.
- Credit Cost: Improved to 0.64%.
- GNPA: Reduced to 2.08%.
- Net NPA: Declined to 0.45%.
Growth in RAM Credit
The bank experienced more than 13% credit growth driven by RAM credit (Retail, Agriculture, MSME), which reached ₹7.04 lakh crores, growing at 18.70%. Specifically:
- Retail credit grew by 31.37%, reaching ₹2.73 lakh crores.
- Housing loans increased by 17.58% to ₹1.21 lakh crores.
- Vehicle loans demonstrated strong growth of 26.20%, totaling ₹25,098 crores.
- MSME showed a solid growth of 13.74%, reaching ₹1.60 lakh crores.
Strategic Initiatives and Future Outlook
Canara Bank exceeded its guidance on 11 out of 13 parameters. The earnings per share improved by 22.11% to ₹21.48, and the CET-1 ratio stood at 12.37%. The bank aims to sustain CASA and RAM growth to maintain margins, projecting a NIM range of 2.45% to 2.50%. The focus remains on organic growth and leveraging digital capabilities to drive future performance.
Source: BSE
