Canara Bank Q4FY26 Net Profit Drops 9.9% Amid Bond Losses
State-owned Canara Bank reported a 9.9% year-on-year decline in net profit to ₹4,506 crore for the fourth quarter of fiscal year 2026. The decrease was primarily driven by a sharp 72.7% fall in treasury income, which turned negative due to hardening bond yields and losses on investment sales. Despite this, the bank demonstrated resilience in core operations, with net interest income rising 3.9% to ₹9,808 crore and net interest margins improving slightly to 2.51%. Asset quality showed significant improvement, as gross non-performing assets decreased to 1.84% from 2.94% a year ago, while the provision coverage ratio increased to 94.21%. Business growth remained robust, highlighted by a 15.3% rise in global advances and a strong 32.9% surge in retail loans. Executive Director Hardeep Singh Ahluwalia noted that while yield on advances moderated following a repo rate cut, lower cost of funds supported margins. The bank maintains a solid capital adequacy ratio of 17.04%, signaling financial stability despite treasury headwinds.
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Canara Bank Q4FY26 Net Profit Drops 9.9% Amid Bond Losses
State-owned Canara Bank reported a 9.9% year-on-year decline in net profit to ₹4,506 crore for the fourth quarter of fiscal year 2026. The decrease was primarily driven by a sharp 72.7% fall in treasury income, which turned negative due to hardening bond yields and losses on investment sales. Despite this, the bank demonstrated resilience in core operations, with net interest income rising 3.9% to ₹9,808 crore and net interest margins improving slightly to 2.51%. Asset quality showed significant improvement, as gross non-performing assets decreased to 1.84% from 2.94% a year ago, while the provision coverage ratio increased to 94.21%. Business growth remained robust, highlighted by a 15.3% rise in global advances and a strong 32.9% surge in retail loans. Executive Director Hardeep Singh Ahluwalia noted that while yield on advances moderated following a repo rate cut, lower cost of funds supported margins. The bank maintains a solid capital adequacy ratio of 17.04%, signaling financial stability despite treasury headwinds.
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