Canara Bank (CANBK) Q4 24/25 earnings summary

Executive summary

• Global business grew 11.32% year-over-year, surpassing ₹25.3 lakh crore, with deposits up 11.01% to ₹14.56 lakh crore and advances up 11.74% to ₹10.73 lakh crore, all exceeding guidance.

• Net profit for Q4 FY25 surged 33.19% year-over-year to ₹5,004 crore, with FY25 standalone net profit at Rs. 17,026.67 crore and consolidated net profit at Rs. 17,539.62 crore.

• Board recommended a 200% dividend (₹4 per ₹2 face value share), up from 161% last year, subject to shareholder approval.

• Financial statements received unmodified audit opinions, with no deviations in fund utilization or debt security covenants.

Financial highlights

• Operating profit for Q4 exceeded ₹8,000 crore for the first time, up 12.14% year-over-year; net interest income for FY25 reached ₹37,072 crore, up 1.38% year-over-year.

• Non-interest income grew 21.74% year-over-year in Q4, with fee-based income up 20.30% to ₹2,335 crore.

• Gross NPA reduced to 2.94% (down 129 bps YoY), net NPA at 0.70% (down 57 bps YoY), both better than guidance.

• Provision coverage ratio improved to 92.70%, highest in bank's history.

• EPS at ₹18.77 per ₹2 share, up 16.98% YoY.

Outlook and guidance

• FY26 guidance: global business growth 10.5%, advances growth 10–11%, deposits growth 9–10%, and return on average assets at 1.05%.

• NIM expected to be maintained at 2.75%-2.80% for FY26.

• PCR target set above 95% to further strengthen the balance sheet.

• Targeting further reduction in gross NPA to 2.5% and net NPA to 0.6% by March 2026.

• ROE guidance at 18.5% and ROA at 1.05% for FY26.