Canara Bank (CANBK) Q1 25/26 earnings summary

Executive summary

• Global business grew 10.98% year-over-year to ₹25.63 lakh crore, with deposits up 10% and advances up 12.42%.

• Net profit rose 21.69% year-over-year to ₹4,752 crore, and operating profit increased 12.32% to ₹8,554 crore.

• Asset quality improved, with gross NPA at 2.69% (down 145 bps) and net NPA at 0.63% (down 61 bps) year-over-year.

• RAM (Retail, Agriculture, MSME) credit grew nearly 15% year-over-year, now comprising 58% of the asset book.

• Board approved unaudited standalone and consolidated financial results for Q1 FY2025-26, with review by statutory auditors and compliance with SEBI and RBI guidelines.

Financial highlights

• Total income for Q1 FY26 was ₹38,063 crore, up 11.88% year-over-year; non-interest income surged 32.73%.

• Net interest income declined 1.71% year-over-year to ₹9,009 crore.

• Fee-based income increased 16.39% year-over-year to ₹2,223 crore.

• Cost-to-income ratio stood at 46.77%, and annualized EPS was ₹21.01, up 21.66% year-over-year.

• Provision coverage ratio improved to 93.17%.

Outlook and guidance

• NIM expected to be maintained around 2.5% in the current quarter, with gradual improvement possible if no further rate cuts occur.

• Guidance for March 2026: global business growth 10.5%, advances growth 10–11%, deposits growth 9–10%.

• Actuals as of June 2025 exceeded guidance in advances growth (12.42%) and ROE (21.05% vs. 18.5%).

• CASA ratio targeted to return above 30% by year-end, with a goal of 32%.

• Guidance for net NPA and gross NPA targets may be achieved ahead of schedule.