Operating profit for the quarter stood at Rs 9,119 crore, up 16% from the year-ago period, reflecting healthy core operating momentum.
The bank’s business growth remained robust during the quarter, with global business rising 13% YoY to Rs 27.13 lakh crore. Global deposits increased 13% to Rs 15.21 lakh crore, while gross advances grew 13% to Rs 11.92 lakh crore.
Within advances, the retail, agriculture and MSME segments continued to drive credit expansion. RAM credit grew 19%, led by a sharp 31% increase in retail credit. Housing loans rose 17%, while vehicle loans posted strong growth of 26%. Fee-based income stood at Rs 2,327 crore, marking a 6.5% YoY increase.
Asset quality improved during the quarter. The gross non-performing asset (NPA) ratio declined to 2.08% as of December 2025, from 2.35% in September 2025 and 3.34% in December 2024, marking a 126 basis point YoY improvement.
The net NPA ratio also strengthened to 0.45%, down from 0.54% in the previous quarter and 0.89% a year ago.
The provision coverage ratio improved to 94.19%, up 293 basis points from the year-ago period. Credit costs declined to 0.64%, improving by 25 basis points, while the slippage ratio eased to 0.64%, a 32 basis point improvement, indicating better control over fresh asset quality stress.Capital adequacy remained comfortable, with the capital to risk-weighted assets ratio (CRAR) at 16.50% as of December 2025. Of this, the common equity tier-1 ratio stood at 12.37%, tier-1 at 14.60%, and tier-2 at 1.90%, providing sufficient headroom for future growth.
On the priority sector front, Canara Bank continued to exceed regulatory requirements. Priority sector lending stood at 45.25% of adjusted net bank credit, above the mandated 40%, while agricultural credit accounted for 20.11%, surpassing the norm of 18%.
Credit to small and marginal farmers stood at 13.07%, weaker sections at 19.05%, micro enterprises at 9.84%, and non-corporate farmers at 15.62%, all above the regulatory thresholds.
On Thursday, following the results announcement, Canara Bank shares fell 4.2% to Rs 151.11 on the NSE.