Noida, May 11 (APAC Media): State-owned Canara Bank on Monday reported a 10% year-on-year decline in its net profit for the fourth quarter of FY26, even as the lender declared a dividend for shareholders.
The bank posted a net profit of Rs 4,506 crore in Q4 FY26, compared with Rs 5,004 crore in the corresponding quarter of the previous fiscal, reflecting pressure on core income and a higher base effect.
Net interest margin (NIM) for the quarter stood at 2.51%, down from 2.80% a year earlier, indicating continued margin compression in a competitive lending environment.
The board approved a dividend of Rs 4.2 per share for FY26.
On the asset quality front, the lender reported improvement, with gross non-performing assets (GNPA) declining to 1.84% from 2.94% in the year-ago period, supported by recoveries and upgrades.
Provisions during the quarter moderated compared to the previous year, aiding overall stability in profitability despite weaker net interest income.
For the full financial year FY26, Canara Bank reported a 12.7% rise in net profit to Rs 19,187 crore, driven by steady credit growth and improved asset quality metrics.
The bank’s capital adequacy ratio remained comfortable at over 12%, underscoring a strong capital position.
Following the earnings announcement, the stock witnessed mild pressure in intraday trade, in line with broader weakness in public sector banking shares.
Disclaimer: Views expressed are those of experts and do not reflect APAC Media. This is for informational purposes only, not financial advice. We are not responsible for investment decisions. Please consult a qualified financial advisor before investing.
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