Canara Bank — Q1 FY26
Canara Bank reported a strong Q1 FY26 with PAT of INR 4,752 crore (+21.69% YoY) and operating profit of INR 8,554 crore (+12.32% YoY), driven by robust credit growth of 12.42% a...
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
79%Questions answered1Evaded / deflected12Questions audited
Partial answer
High priority
NIM decline trajectory and PSLC income sustainability
Asked by Mahrooq Gowher, Sambre Corporation
Management gave a floor but not a precise trajectory, hedging on rate cuts.
conditional on no further rate cutsno specific quantum for Q2 decline
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Question
In the first quarter, of course, there is a decline of 17 basis points. Right? How do we look at the second, third quarters? Do you think that some of the margin decline has been upfronted?
Satyanarayana Raju, MD and CEO
Overall, I feel that our NIM may not go below 2.5%, but we will be able to maintain that around the 2.5% for this current quarter. We see that slowly that if no further rate cuts are there, subject to that, we may see slowly that the NIM may gradually improve in the third and fourth quarter.
Answered
High priority
Is the NIM guidance of 2.70-2.80% still relevant?
Asked by Jai Mundra, Beep Experience
CEO explicitly stated the guidance is difficult to maintain, giving a clear answer.
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Question
Sir, is the guidance, that is, the guidance slide which is there in the presentation deck, is that, I mean, is that relevant or on the NIM part or is it not very relevant?
Satyanarayana Raju, MD and CEO
If you take all those things, it may be difficult to maintain that 2.75-2.80 guidance for this current financial year, I feel personally.
Answered
Medium priority
Why hasn't cost of deposits declined despite wholesale deposit repricing?
Asked by Jai Mundra, Beep Experience
Explained the lag in repricing due to deposit maturity profiles.
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Question
But still, the cost of deposit has not seen any downtake. Why is that so?
Satyanarayana Raju, MD and CEO
That's what actually I'm telling you, sir, that the cost of deposit, whatever it is up to March, there is no reduction. Whatever we have taken, the deposits for a period of three to six months or nine months or one year, that can be repriced only when it comes for that expiry date, due date.
Answered
Medium priority
What is the INR 1,883 crore one-off item in consolidated accounts?
Asked by Jai Mundra, Beep Experience
Clearly identified the RRB and explained the book entry.
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Question
In the notes to account, we have mentioned INR 1,883 crore of one-off item for the Consolidated Canara Bank. It looks like it pertains to RRBs, but the amount looks very high.
Satyanarayana Raju, MD and CEO
Sir, APGB. Actually, that is APGB, sir. Andhra Pragati Grameena Bank, that was one of the best bank among 42 private sector RRBs. That was the highest profit earning RRB, which was under our control up to that April 30th.
Answered
Medium priority
When did we pass on the repo rate cut to borrowers?
Asked by Piran Engineer, CLSA
Provided specific mechanism and timing of rate pass-through.
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Question
Firstly, sir, firstly, just wanted to understand on repo rate cut, what happened in April? When did we pass it on? Immediately the next day or we pass it on after three months?
Satyanarayana Raju, MD and CEO
Our ALM date is 12th every month. So whenever that rate cut happens, whether it happens on 5th or 6th or 7th or 8th, if it is before 12th, 12th, it will be passed on to that because ALCO committee meets on every month 12th and it will be passed on from 12th effect.
Evasive
High priority
Can credit cost guidance of 90 bps be revised given low NPAs?
Asked by Bhavik Shah, McKinsey
Did not answer whether guidance would be revised; instead said they will 'excel'.
no commitment to revise guidancevague 'excel' language
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Question
We are at the target for 0.6% at NPA. And still, I mean, our credit cost guidance is at 90 basis points. No scope for revision again, sir?
Satyanarayana Raju, MD and CEO
No, actually, always in that is our regular practice that we give guidance conservatively, but we will excel in our performance. We need not change the guidance, but definitely we will excel whatever it is there in the net NPA or gross NPA figures what we have given for the March.
Partial answer
High priority
How will CASA improve from below 30% to 32% target?
Asked by Ashok Ajmera, Ajcon Global Services
Gave a hopeful outlook but no specific initiatives to achieve 32%.
no concrete plan beyond hope from rate cuts
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Question
In this quarter, I think we have probably, for the first time, gone below 30%, maybe in the last four, five, six quarters. What exactly are we doing on the CASA front? When you say that your target guidance is 32%, how will the CASA improvement take place?
Satyanarayana Raju, MD and CEO
I am sure that we will be above 30% even at the end of the financial year. We will try to reach the percentage we have given at 32%. Again, why I am telling you this hope we have is gradually the term deposit interest rates are coming down.
Partial answer
Medium priority
What is the treasury income outlook and AFS gains?
Asked by Ashok Ajmera, Ajcon Global Services
Acknowledged lower treasury income but did not quantify AFS gains or bridge details.
no specific AFS gain number givenvague on bridging
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Question
With further two rate cuts, expected rate cuts, can we get some color on total overall treasury operations as well as the kind of profitability which will come in the other income rather than going to the AFS results? How much AFS results have we already built up?
S K Majumdar, Executive Director
To answer your question straight, like the INR 1,000 crore additional which you saw this time, that is in the first quarter, that will be a bit, that will be substantially lower, which we are already thinking of avenues to bridge.
Answered
Medium priority
Does the MCLR cut fully reflect in yield on advances?
Asked by Mona Ketan, Dolat Capital Market Private
Clearly explained the lag in MCLR transmission to yields.
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Question
So the question is, in terms of the reported yields, does that already factor in the yields? I mean, to what extent? Or is it yet to be reflected in the actual yield on advances?
Satyanarayana Raju, MD and CEO
Naturally, madam. It will come in the lag only, any reduction because one-year MCLR resetting may happen in the every year. So whichever of the accounts are due for that completing that one year, only those accounts it attracts.
Answered
Medium priority
How should we view OPEX run rate for the year?
Asked by Nitin Nagarwal, Accenture
Provided specific growth range and cost-to-income ratio.
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Question
How should one look at the OPEX run rate for the year?
Satyanarayana Raju, MD and CEO
We are sure that we will maintain only on the same level of operating expenses with maybe a 6%-8% growth. If you see our cost to income ratio, last month, March, it was around 47.55%. Now it has come down to 46.77%.
Answered
Medium priority
Have we made provisions for project financing guidelines effective Oct 1?
Asked by Anand Gandhi, Bank of America
Clearly stated no additional provisioning required this quarter.
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Question
So basically, sir, my question was on the project financing provision, which will actually kick in from 1 October. Have we made some provisions regarding that in this quarter and provisions are higher?
Satyanarayana Raju, MD and CEO
Sir, in the guidelines, they are given that all the projects which are coming to the financial closure and implementing in the stages up to September 30th, these guidelines are not applicable at all. Any project finance which is financial closure is happening only after October 1, 2025. Only those projects that need that additional provisioning.
Answered
Medium priority
What is the blended yield on RAM advances?
Asked by Saurin Chokshi, Proofpoint
Provided specific yield numbers for RAM sector.
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Question
What would be the blended yield on RAM sector?
Satyanarayana Raju, MD and CEO
That's what, sir. Actually, the last time when it comes for that blended RAM sector, it was around 9.23-9.3% was there. Now it will come down a little bit to 8.7-8%. That is the average yield, sir.