Canara Bank — Q4 FY26 earnings call
Summary generated by AI from the official transcript Canara Bank filed with BSE on 14 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Canara Bank reported Q4 and full-year FY26 results, with global business at Rs 28.0 lakh crore, net interest income of Rs 9,808 crore for the quarter and full-year net profit of Rs 19,187 crore, up 12.69% year on year. Management attributed the sequential decline in operating and net profit to one-time listing gains of Rs 1,930 crore booked in the prior quarter and mark-to-market losses of around Rs 800 crore from bond yield and equity market movements this quarter. The bank also detailed its preparedness for RBI's ECL provisioning norms, estimating a total impact of about Rs 10,000 crore which it said can be absorbed in one go or staggered over four years.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Global business: 28.0 lakh crore (FY26)
p. 2
“So, our global business stood at 28.0 lakh crore and it grew by 12.11 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Net interest income: Rs. 9,808 crore (Q4 FY26)
p. 2
“Net interest income for the quarter was Rs. 9,808 crore.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Operating profit: Rs. 33,019 crore (FY26)
p. 2
“Our operating profit for the full year is Rs. 33,019 crore and it grew by 5.19 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Net profit: Rs. 19,187 crore (FY26)
p. 2
“Our net profit for entire year was Rs. 19,187 crore and it grew by 12.69 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Provision coverage ratio: 94.21 percent (FY26)
p. 2
“Our provision coverage ratio improved by 151 basis point and stood at 94.21 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Credit cost: 0.59 percent (FY26)
p. 2
“Our credit cost reduced by 33 basis points and stood at 0.59 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
GNPA: 1.84 percent (FY26)
p. 2
“Our GNPA for the entire year, there was a YoY decline of 110 basis points and stood at 1.84 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Net NPA: 0.43 percent (FY26)
p. 2
“Our net NPA, there was a decline of 27 basis points year on year and stood at 0.43 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Dividend: 210 percent of paid up capital, Rs. 4.20 per share (FY26)
p. 2
“We are proposing a dividend of 210 percent of paid up capital and our share face value price is 2.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
RAM credit growth: 19.73 percent, 7.30 lakh crore (FY26)
p. 2
“The RAM credit grew by 19.73 percent and stood at 7.30 lakh crore.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Retail credit growth: 32.93 percent, 2.96 lakh crore (FY26)
p. 2
“Retail credit grew by 32.93 percent and stood at 2.96 lakh crore.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Earnings per share: 21.15 (FY26)
p. 2
“Our earnings per share improved by 12.68 percent and stood at 21.15.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
CRAR: 17.04 percent (FY26)
p. 2
“Our CRAR improved by 71 basis points and stood at 17.04 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
Slippage ratio: 0.69 percent (12 months FY26)
p. 2
“Our slippage ratio 12 month is 0.69 which declined by 21 basis points.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
SMA book: 33,728 crores (March 2026)
p. 4
“In the December 25, our SMA book was 35,000 crores. Now, it is 33,728.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
Slippage: 2771 crores (Q4 FY26)
p. 4
“Sir, see, this quarter, our slippage was 2771 crores.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
Gold loan portfolio: 2,45,000 crores
p. 8
“Sir, my gold loan portfolio is 2,45,000 crores.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 8 of the filed PDF · View the filing
LCR: 118%
p. 7
“So, LCR was 118%. It is much above the regulatory level of 100%.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 7 of the filed PDF · View the filing
TWO recovery: 6500 crores (FY26)
p. 3
“If you see last year for the full financial year, the TWO recovery was 6800 crores and in this financial year, it is 6500 crores.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 3 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Advances growth — 11% to 12% · FY27
stated firmly by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 2
“So, our global business stood at 28.0 lakh crore and it grew by 12.11 percent.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 2 of the filed PDF · View the filing
ECL impact — about 10,000 crores total, staggered up to 4 years
stated conditionally by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 4
“Total requirement will be 10,000. And it can be staggered to 4 years.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
CRAR impact from ECL — drop of 1% in CRAR
stated conditionally by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 4
“If we absorb in the first go itself, then there will be a drop of 1% in the CRAR.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
NIM — 2.5 to 2.6
stated as an aspiration by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 7
“So, we presume that it will hover around 2.5 to 2.6 here.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 7 of the filed PDF · View the filing
PSLC income — 3,000 crores · FY27
stated as an aspiration by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 18
“No, no. It is 3,000. It will be around 3,000.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 18 of the filed PDF · View the filing
RAM to corporate mix — 60-40
stated as an aspiration by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 22
“We endeavour to reach at 60-40. 59 RAM and 40 corporate.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 22 of the filed PDF · View the filing
Return on assets — more than 1%
stated as an aspiration by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 20
“That is why we have given it our return on asset more than 1%.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 20 of the filed PDF · View the filing
Gold loan growth — double digit
stated as an aspiration by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 9
“Sir, it will be in double digit because traditionally our number of branches are high in South India, sir.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 9 of the filed PDF · View the filing
Canara HSBC / Canara Robeco stake dilution — no further dilution
stated firmly by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
p. 25
“Further dilution we don't foresee sir.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 25 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management attributed the decline to one-time listing gains booked in the prior quarter and MTM losses from bond yields and equity markets this quarter.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Ashok Ajmera: Why did operating profit and net profit decline sequentially despite strong business growth?
p. 3
“So, sir, last quarter we had listing gains from Canara HSBC and Canara Robeco of 1930 crores.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 3 of the filed PDF · View the filing
Management estimated a total additional provisioning requirement of about Rs 10,000 crore, which can be staggered over four years and absorbed given annual profits of Rs 19,000-20,000 crore.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Ashok Ajmera: What is the expected impact of RBI's ECL provisioning norms?
p. 4
“And our profit is in the range of 19,000 to 20,000 crores. So, bank is in a very, very good position to absorb the entire in the first go itself.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
Management said the bank traditionally gives conservative guidance based on GDP growth projections and expects to exceed the guided numbers again.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Param Subramaniam: Why is the advances growth guidance of 11-12% lower than the 15%+ achieved this year?
p. 6
“Actually, bank has a tradition of giving some conservative numbers because GDP growth is projected at 6.9%.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 6 of the filed PDF · View the filing
Management said the bank's profit levels can absorb the impact but capital raising will be considered if required, pending board approval.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Jai Mundra: Is there any need for capital raising given the ECL impact?
p. 10
“So, this will continue, I think, for the next year also. So, if the need be, if need required, we will go for capital raising.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 10 of the filed PDF · View the filing
Management said the run-rate impact has not been worked out yet as it depends on probability of default calculations, with system implementation expected in September.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Ms. Maruk Adajania: What is the expected run-rate impact of ECL on credit cost?
p. 13
“So that we have not worked it out because it is a forward-looking provision.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 13 of the filed PDF · View the filing
Management explained that four large accounts caused the variation, while current accounts otherwise grew at a healthy pace.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Suraj Das: Why did current account growth show a sharp negative number?
p. 16
“There were four accounts which were having big, big ticket four accounts.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 16 of the filed PDF · View the filing
Management said this reflected a release of large borrower framework provisions no longer required by RBI guidelines and releases from three large standard accounts as balances declined.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Ashlesh Sonje: What explains the negative provision line in the P&L?
p. 21
“See, in standard accounts, also in three big accounts, we were maintaining additional provision. Their balances have gone down.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 21 of the filed PDF · View the filing
Management listed reappraisal of disbursed gold loans each quarter, dedicated officers at high-value branches, enhanced security, and TRTL safes.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked by Mr. Dixit Doshi: What checks does the bank have against gold loan fraud, given recent media reports?
p. 26
“One is the entire portfolio of a quarter whatever we have disbursed that gets reappraised in the subsequent quarter.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 26 of the filed PDF · View the filing
Management explained that 50% of the portfolio is repo-linked, which limited the transmission of the December repo rate cut.
Answered by Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank
Asked: Why did yield on advances decline by only 5 basis points despite the 25 bps repo cut?
p. 27
“So, 50% of our portfolio is repo linked. And if you see in the December there was a 25% reduction in repo rate.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 27 of the filed PDF · View the filing
Risks flagged
Geopolitical situation causing bond yield increase and equity market correction leading to MTM losses
p. 3
“Secondly, due to geopolitical situation, the bond yields moved from 6.59 to 7.05 and the share market corrected by 4000 basis point.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 3 of the filed PDF · View the filing
Additional provisioning requirement from RBI's ECL regulatory floor change in stage 2
p. 4
“Only at stage 2, we see that in stage 2, the regulatory floor has been moved from 0.4 to 5%. So, some additional provision will be required and we presume it will be 2,500 crores.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
MSME slippage observed during the quarter
p. 4
“And out of this 2771, 1333 is for MSME.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 4 of the filed PDF · View the filing
Occasional gold loan fraud incidents despite checks in place
p. 26
“So, number of checks and balances are there but one-off incidents keep on occurring.”
Mr. Hardeep Singh Ahluwalia - MD and CEO, Canara Bank, page 26 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.
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