Canara Bank Q4 profit drops 10 pc; moves staff out of Dubai after conflict

Mumbai, May 11 (PTI) State-run Canara Bank on Monday reported a 9.88 per cent fall in its consolidated net profit to Rs 4,574.23 crore for the fourth quarter due to a drop in non-interest income.

In the year-ago period, the net profit stood at Rs 5,070.19 crore.

On a standalone basis, the net profit fell by 9.94 per cent year-on-year to Rs 4,505.57 crore.

The core net interest income increased marginally by 3.88 per cent year-on-year to Rs 9,808 crore from Rs 9,442 crore in the year-ago period.

It’s net interest margin (NIM) improved to 2.54 per cent in the reporting quarter, from 2.45 per cent in a quarter ago period. However, it was down from 2.73 per cent in the year-ago quarter.

“We were very conscious about doing credit through the retail, agri,

and MSME (RAM) model, where spreads are high. As a result, our NIM improved by 9 basis points during the quarter,” Hardeep Singh Ahluwalia, executive director at Canara Bank, said during an interview with PTI.

He said the bank had to relocate staff out of its branch in Dubai following the conflict in West Asia.

Under the government’s ECLGS 5.0 scheme, Ahluwalia expects loan demand of Rs 18,000-20,000 crore from MSME and non-MSME borrowers.

“We will be extending support of around Rs 18,000-20,000 crore to these affected parties. The eligible categories include MSMEs as well as five specified non-MSME sectors, including airlines,” Ahluwalia said.

The Union Cabinet has approved ECLGS 5.0 with an overall outlay of Rs 2.55 lakh crore to provide additional working capital support to businesses affected by the ongoing geopolitical tensions in West Asia.

In the reporting quarter, global deposits increased by 9.71 per cent year-on-year to Rs 15,68,678 crore. Domestic deposits of the bank stood at Rs 14,36,905 crore as at March 31, 2026, with growth of 77.95 per cent year-on-year.

Global advance (gross) increased by 15.30 per cent year-on-year to Rs 12,37,548 crore. Domestic advances (gross) of the bank stood at Rs 11,61,143 crore as at March 31, 2026, up 15.12 per cent year-on-year.

RAM credit increased by 119.73 per cent year-on-year to Rs 7,30,520 crore, retail lending portfolio increased by 332.93 per cent year-on-year to Rs 2,96,912 crore, and housing Loan portfolio increased by 17.55 per cent year-on-year to Rs 1,24,799 crore.

Ahluwalia expects growth of 11-12 per cent in advances, and a 9-10 per cent growth in deposits in the financial year 2026-27.

Gross non-performing assets (NPA) ratio improved to 1.84 per cent as on March 31, 2026, reduced from 2.08 per cent as on December 31, 2025, and 2.94 per cent as on March 31, 2025.

Provision Coverage Ratio (PCR) stood at 94.21 per cent as at March 2026, against 94.19 per cent as at December 2025 and 92.70 per cent as at March 2025, as per the release.

Shares of Canara Bank ended 3.72 per cent to Rs 129.35 apiece on BSE, while the benchmark Sensex closed 1.70 per cent down at 76,015.28. PTI MSU AA MR