Canara Bank (CANBK) Q3 25/26 earnings summary

Executive summary

• Global business reached INR 2,710,000 crore, up 13.23% year-over-year, with deposits at INR 1,521,000 crore (+12.95%) and advances at INR 1,192,000 crore (+13.59%).

• Net profit for the quarter was INR 5,155 crore, a 25.61% year-over-year increase, marking the highest-ever quarterly profit.

• Operating profit rose 16.36% year-over-year to INR 9,119 crore.

• Asset quality improved, with gross NPA at 2.08% (down 126 bps year-over-year) and net NPA at 0.45% (down 44 bps year-over-year).

• Strong growth in retail, agriculture, MSME, and gold loan portfolios, all contributing to robust business momentum.

Financial highlights

• Total income for Q3 FY26 was INR 39,881 crore, up 10.43% year-over-year; net interest income grew 1.13% year-over-year to INR 9,252 crore.

• Non-interest income surged 36.16% year-over-year, driven by strong treasury income and recoveries.

• Provision coverage ratio (PCR) improved to 94.19%.

• Return on assets improved to 1.13% year-over-year; return on net worth (ROE) at 20.55%.

• Earnings per share rose 22.11% to INR 21.48.

Outlook and guidance

• Surpassed 11 out of 13 guidance parameters for the year, except for CASA and NIM, which remain industry-wide challenges.

• NIM at 2.50% was below the guided range of 2.75%-2.80%, but expected to remain in the 2.45%-2.50% range as rate cycle stabilizes.

• Credit and deposit growth expected to sustain above 13% in the coming quarters.

• Recovery momentum from written-off accounts and NPAs expected to continue, supported by multiple recovery tools.

• The bank continues to focus on asset quality, digital banking expansion, and compliance with regulatory requirements.