Canara Bank has reported a strong financial performance for the quarter and fiscal year ended March 31, 2026. The bank achieved significant growth across key parameters, including a 12.69% year-on-year increase in annual net profit, reaching ₹19,187 crore. Driven by strong demand in retail, agriculture, and MSME sectors, the bank’s global business grew by 12.11%. Furthermore, the bank declared a dividend of 210% of paid-up capital, reflecting its improved financial stability and asset quality.
Key Financial Highlights
For the fiscal year 2025-26, Canara Bank demonstrated consistent growth, closing the year with an annual net profit of ₹19,187 crore, a robust 12.69% improvement compared to the previous year. The bank’s global business expanded to ₹28,06,226 crore, reflecting a year-on-year growth rate of 12.11%. Notably, global advances grew by 15.30%, totaling ₹12,37,548 crore, while global deposits reached ₹15,68,678 crore, marking a 9.71% increase.
Asset Quality and Operational Efficiency
Canara Bank has successfully prioritized asset quality throughout the fiscal year. The Gross NPA ratio saw a significant improvement, declining by 110 basis points year-on-year to 1.84%. Similarly, the Net NPA ratio dropped by 27 basis points to 0.43%. Reflecting strong provisioning practices, the Provision Coverage Ratio (PCR) improved to 94.21%, an increase of 151 basis points, while the credit cost remained controlled at 0.59%.
Strategic Growth in RAM and Priority Sectors
The Retail, Agriculture, and MSME (RAM) segments remained core drivers of growth. RAM credit grew by 19.73% to ₹7,30,520 crore. Specifically, retail credit saw a substantial surge of 32.93%, while housing loans and vehicle loans grew by 17.55% and 26.33%, respectively. The bank also successfully exceeded several mandated priority sector targets, with Total Priority reaching 43.71% against the 40.00% norm, and agriculture lending hitting 19.52% of ANBC.
Capital Strength and Future Outlook
As of March 31, 2026, the bank’s Capital to Risk-Weighted Assets Ratio (CRAR) stands at 17.04%, reflecting a solid foundation for future expansion. Following the successful listing of subsidiaries Canara Robeco Asset Management and Canara HSBC Life Insurance, the bank transitioned these entities to associates, recording a substantial net gain during the third quarter. Looking ahead, the bank has provided guidance for fiscal year 2027, projecting business growth in the range of 10% to 11% and aiming for a Gross NPA of 1.50%.
Source: BSE
