Canara Bank Q4 profit surges 28% to Rs 5,070 crore, targets 11% loan growth in FY26

Canara Bank posted a robust 28% year-on-year jump in its consolidated net profit to Rs 5,070 crore for the March quarter, aided by lower provisions and strong non-core income growth.The state-owned lender had reported a profit of Rs 3,951 crore in the same quarter last year.For the full financial year FY25, the bank’s net profit rose to Rs 17,540 crore, up from Rs 15,279 crore in FY24, underscoring steady operational performance despite pressures on core margins, according to news agency PTI.While loans grew 11% year-on-year, the bank’s core Net Interest Income (NII) dipped slightly by 1.44% to Rs 9,442 crore, hit by a narrowing net interest margin (NIM), which fell by 25 basis points to 2.80%.On the other hand, non-interest income saw a sharp 21.74% rise, reaching Rs 6,351 crore. This was primarily driven by a 30% surge in recoveries from written-off accounts to Rs 2,471 crore and a 15% rise in treasury income, which stood at Rs 995 crore.Asset quality improved, with gross NPAs falling to 2.94% in March from 3.34% in the previous quarter, and fresh slippages declining to Rs 2,655 crore. Overall provisions dropped to Rs 1,831 crore from Rs 2,483 crore a year ago. Notably, NPA provisions rose to Rs 2,849 crore from Rs 2,282 crore, but this was offset by a Rs 1,334 crore write-back from non-performing investments, compared to a Rs 295 crore provision in the previous year.Canara Bank’s MD & CEO Satyanarayana Raju outlined the growth roadmap for FY26, targeting 10–11% loan growth and over 9% deposit growth. He aims to maintain NIMs in the 2.75–2.80% range, despite rate dynamics. Around 44% of the bank’s loan book is linked to external benchmarks, allowing immediate repricing after any RBI repo rate changes.Raju also projected a further reduction in gross NPAs to 2.50% in FY26 and highlighted a strong capital position, with a capital adequacy ratio of 16.39%, including 12.09% core Tier-1 capital. The bank’s board is scheduled to meet early next month to discuss a capital-raising plan.Shares of Canara Bank closed 1.84% higher at Rs 95.38 on the BSE, outperforming the benchmark Sensex, which declined by 0.51%.