Global Business
₹28.0 lakh cr
+12.11% YoY
Global business grew to ₹28.0 lakh crore, driven by strong advances growth.
CANARABANK
Financial Services
15 May 2026
Canara Bank Ltd — Q4 FY26
Canara Bank reported a mixed Q4 FY26.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Canara Bank reported a mixed Q4 FY26. Full-year net profit grew 12.69% to ₹19,187 crore, driven by strong credit growth of 15.30% and NIM improvement of 9 bps QoQ to 2.5-2.6%. However, quarterly operating profit fell sharply due to the absence of ₹1,930 crore listing gains from Canara HSBC and Canara Rebecca, and MTM losses of ₹800 crore from bond yield volatility. Asset quality improved with GNPA down 110 bps YoY to 1.84% and SMA book declining. Management guided for 11-12% credit growth in FY27 (confident of exceeding), NIM of 2.5-2.6%, and ROA above 1%. ECL implementation impact of ~₹10,000 crore can be absorbed over four years. Key risk: elevated slippages in MSME and agri segments could pressure credit costs.
Key Numbers
GNPA Ratio
1.84%
-110 bps YoY
Gross NPA ratio improved 110 bps year-on-year to 1.84%.
SMA Book
₹33,728 cr
-16.7% YoY
SMA outstanding declined from ₹40,481 cr in Mar'25 to ₹33,728 cr in Mar'26.
Gold Loan Portfolio
₹2.45 lakh cr
+33% YoY
Gold loan portfolio grew strongly, with retail gold loans driving the growth.
Management Guidance
Credit growth guidance of 11-12% for FY27
Management guided for 11-12% advances growth, but expressed confidence in exceeding this, similar to last year's 10-11% guidance which ended at 15.30%.
Management guidance growthNIM to remain in 2.5-2.6% range
Net interest margin is expected to sustain at 2.5-2.6% in FY27, supported by conscious pricing on deposits and focus on high-yield RAM credit.
Management guidance marginsROA above 1% for FY27
Return on assets is guided to be above 1% for the full year, despite the absence of one-time listing gains.
Management guidance marginsECL impact of ~₹10,000 cr can be absorbed over 4 years
The bank estimates a total ECL provision requirement of about ₹10,000 crore, which can be staggered over four years, with profits of ₹19,000-20,000 crore providing ample buffer.
Management guidance otherKey Risks
MSME slippages remain elevated
Out of total slippages of ₹2,771 crore in Q4, ₹1,333 crore came from MSME, indicating stress in this segment.
medium · management_commentaryECL implementation could pressure credit costs
While the one-time impact is manageable, the run-rate impact of ECL on credit costs is not yet quantified and could be higher than current levels.
medium · analyst_questionGeopolitical risks and bond yield volatility
Management cited geopolitical tensions causing bond yield movements and MTM losses of ₹800 crore in Q4, which could recur.
medium · management_commentaryGold loan fraud incidents
Recent media reports of gold loan frauds pose operational risk, though management has implemented checks and NPA remains minimal.
low · analyst_questionNotable Quotes
Our credit growth is very high at 15.30%. So that places us uniquely to negotiate on pricing. We are not entertaining low yield advances.
We are very very conscious on pricing on bulk deposits and CD. So we work on the blended model only and we are very conscious what is the rate of inflow and what is the rate of outgo.
Our SMA is best in the industry it is only 2.75%.
Frequently Asked Questions
What was Canara Bank's revenue in Q4 FY26?
Canara Bank reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Canara Bank management give for FY27?
Credit growth guidance of 11-12% for FY27: Management guided for 11-12% advances growth, but expressed confidence in exceeding this, similar to last year's 10-11% guidance which ended at 15.30%. NIM to remain in 2.5-2.6% range: Net interest margin is expected to sustain at 2.5-2.6% in FY27, supported by conscious pricing on deposits and focus on high-yield RAM credit. ROA above 1% for FY27: Return on assets is guided to be above 1% for the full year, despite the absence of one-time listing gains. ECL impact of ~₹10,000 cr can be absorbed over 4 years: The bank estimates a total ECL provision requirement of about ₹10,000 crore, which can be staggered over four years, with profits of ₹19,000-20,000 crore providing ample buffer.
What are the key risks for Canara Bank in FY27?
Key risks include MSME slippages remain elevated — Out of total slippages of ₹2,771 crore in Q4, ₹1,333 crore came from MSME, indicating stress in this segment.; ECL implementation could pressure credit costs — While the one-time impact is manageable, the run-rate impact of ECL on credit costs is not yet quantified and could be higher than current levels.; Geopolitical risks and bond yield volatility — Management cited geopolitical tensions causing bond yield movements and MTM losses of ₹800 crore in Q4, which could recur.; Gold loan fraud incidents — Recent media reports of gold loan frauds pose operational risk, though management has implemented checks and NPA remains minimal..
Did Canara Bank meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Canara Bank Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.