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 for Q1 FY26, with operating profit up 12.32% to ₹8,554 crore.

• Asset quality improved: gross NPA declined to 2.69% and net NPA to 0.63%, with PCR at 93.17%.

• RAM (Retail, Agriculture, MSME) credit grew nearly 15% year-over-year, now comprising 58% of the asset book; retail credit up 34%.

• Board approved unaudited standalone and consolidated results for Q1 FY2025-26, with full compliance to SEBI and RBI guidelines.

Financial highlights

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

• Net interest income declined 1.71% year-over-year to ₹9,009 crore; NIM fell to 2.55%.

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

• EPS (annualized) at ₹21.01, up 21.66% year-over-year; book value per share at ₹102.33.

• Standalone total income rose to ₹38,063.31 crore from ₹34,020.23 crore year-over-year.

Outlook and guidance

• FY26 guidance: global business growth 10.5%, advances 10–11%, deposits 9–10%.

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

• Credit growth guidance of 10-11% is likely to be exceeded, with actual growth expected at a minimum of 12%.

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

• Bank continues to maintain strong capital adequacy (Basel III CAR at 16.52% standalone, 16.59% consolidated) and robust asset quality.