Canara Bank Q4 profit surges 28% to Rs 5,070 crore, targets 11% loan growth in FY26 – Times of India

Canara Bank posted a strong 28% yr-on-yr leap in its consolidated internet profit to Rs 5,070 crore for the March quarter, aided by decrease provisions and powerful non-core revenue growth.The state-owned lender had reported a profit of Rs 3,951 crore in the identical quarter final yr.For the total monetary yr FY25, the financial institution’s internet profit rose to Rs 17,540 crore, up from Rs 15,279 crore in FY24, underscoring regular operational efficiency regardless of pressures on core margins, in accordance to information company PTI.Whereas loans grew 11% yr-on-yr, the financial institution’s core Internet Curiosity Revenue (NII) dipped barely by 1.44% to Rs 9,442 crore, hit by a narrowing internet curiosity margin (NIM), which fell by 25 foundation factors to 2.80%.Alternatively, non-curiosity revenue noticed a pointy 21.74% rise, reaching Rs 6,351 crore. This was primarily pushed by a 30% surge in recoveries from written-off accounts to Rs 2,471 crore and a 15% rise in treasury revenue, which stood at Rs 995 crore.Asset high quality improved, with gross NPAs falling to 2.94% in March from 3.34% in the earlier quarter, and contemporary slippages declining to Rs 2,655 crore. Total provisions dropped to Rs 1,831 crore from Rs 2,483 crore a yr in the past. Notably, NPA provisions rose to Rs 2,849 crore from Rs 2,282 crore, however this was offset by a Rs 1,334 crore write-again from non-performing investments, in contrast to a Rs 295 crore provision in the earlier yr.Canara Bank’s MD & CEO Satyanarayana Raju outlined the growth roadmap for FY26, focusing on 10–11% loan growth and over 9% deposit growth. He goals to preserve NIMs in the two.75–2.80% vary, regardless of fee dynamics. Round 44% of the financial institution’s loan ebook is linked to exterior benchmarks, permitting fast repricing after any RBI repo fee adjustments.Raju additionally projected an additional discount in gross NPAs to 2.50% in FY26 and highlighted a powerful capital place, with a capital adequacy ratio of 16.39%, together with 12.09% core Tier-1 capital. The financial institution’s board is scheduled to meet early subsequent month to talk about a capital-elevating plan.Shares of Canara Bank closed 1.84% increased at Rs 95.38 on the BSE, outperforming the benchmark Sensex, which declined by 0.51%.