Canara Bank Q3 results: Net profit up 25.6% on rise in non-interest income

Canara Bank's Q3FY26 profit rose 25.6% driven by non-interest income, but shares slid nearly 5% as NII growth stayed muted and margins narrowed

Canara Bank reported a 25.6 per cent year-on-year (Y-o-Y) rise in its net profit to ₹5,155 crore for the third quarter of the current financial year (Q3 FY26) on the back of a rise in its non-interest income.

 

The state-owned lender’s non-interest income rose 36.16 per cent Y-o-Y to ₹7,900 crore in Q3 FY26.

 

Canara Bank shares slipped 4.75 per cent to ₹150.30 per share on Thursday as net interest income growth was flat.

 

Net interest income (NII) — the difference between interest earned and interest expended — went up 1.13 per cent to ₹9,252 crore. Net interest margin for Q3 fell to 2.45 per cent as compared to 2.71 per cent in the year-ago period.

 

 

The bank’s management said the net interest margin will stabilise at 2.45–2.50 per cent going ahead.

 

“The pressure on the NIM continues. To curb the pressure, the bank is focusing on RAM and low-yielding corporate advances. The bank is following a shift from retail to corporates and to RAM to improve margins,” said SK Majumdar, executive director, Canara Bank, during the post-earnings call with the media.

 

Canara Bank reported a 13.6 per cent growth in its global advances to ₹11.92 trillion, while global deposits were up 12.95 per cent year-on-year to ₹15.21 trillion.

 

The bank said both loan growth and deposit growth were higher than the guided range provided earlier.

 

In total advances, RAM (retail, agri and MSME) advances rose 18.7 per cent and advances to corporates rose almost 7 per cent.

 

The bank expects credit growth of 13.5 per cent and deposit growth of 12.95 per cent for the current financial year.

 

The public sector lender reported 9.32 per cent year-on-year growth in current account and savings account (CASA), while it fell 3.7 per cent sequentially.

 

The bank’s credit-to-deposit ratio for the quarter was at 78.38 per cent.

 

Asset quality for the lender saw improvement from the previous quarter. Gross non-performing assets stood at 2.08 per cent from 2.35 per cent in September, and 3.34 per cent a year ago.

 

Total provisions at the end of the quarter saw a 6.2 per cent increase to ₹3,964 crore from ₹3,733 crore a year ago.