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Canara Bank Q4 Results Preview: PSU lender's PAT seen rising 9%, asset quality improving
Analysts expect Canara Bank to stage a strong financial performance for the quarter ended March 31, with improving asset quality and double-digit credit growth. Read on to learn about key expectations in detail.
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Analysts expect Canara Bank to stage a sequential improvement in its asset quality position.
Written By: ZeeBiz WebTeam
Edited By: Sandeep Singh
Updated: Fri, May 08, 2026
12:54 PM IST
12:54 PM IST
New Delhi, ZeeBiz WebDesk
Canara Bank Q4 FY26 Results Preview: State-run lender Canara Bank is scheduled to report its financial results for the quarter as well as the year ended March 31 on Monday, May 11. Analysts anticipate a strong show with late single digit percentage growth in quarterly net profit on the back of improved asset quality and margins.
According to Zee Business research, Canara Bank is estimated to register a net interest income (NII) of Rs 9,560 crore for the final three months of FY26, marking a rise of 4.5 per cent over the corresponding period a year ago. For the quarter ended March 31, 2025, the PSU bank had posted a net interest income of Rs 9,148 crore.
NII -- or the difference between interest earned and interest paid -- is the key measure of a lender's top line.
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Analysts peg its March-quarter net profit at Rs 4,480 crore, which translates to a year-on-year rise of 9 per cent. The bank had posted a net profit of Rs 4104 crore for the year-ago period.
Canara Bank Q4 Preview: Improvement anticipated in asset quality
The bank is expected to stage an improvement in its asset quality, gauged by sequential changes in the proportion of bad loans in total assets.
Its gross net non-performing assets (GNPAs) are estimated to decrease to 2.3 per cent of its total loans in Q4, versus 2.5 per cent in the previous quarter.
Similarly, its net non-performing assets (NNPAs) -- or net bad loans -- are expected to contract to 0.5 per cent of its total loans in the quarter ended March 31, shrinking from 0.6 per cent in the previous three months.
A reduction in bad loans is indicative of improving financial health and stability.
Canara Bank Q4 net interest margin
According to Zee Business research, the lender is expected to stage a sequential improvement in its net interest margin (NIM).
NIM is a key measure of profitability for commercial banks.
They peg the March-quarter margin at 2.5-2.6 per cent.
Deposit and loan growth
Analysts anticipate deposit growth at Canara Bank to come in at 13.6 per cent in Q4.
They expect its loans to grow 12.7 per cent.
Canara Bank Q3 results
For the quarter ended December 31, the bank reported a 25.6 per cent rise in net profit to Rs 5,155.1 crore, with NII increasing to Rs 9,252.3 crore from Rs 9,148.6 crore a year ago.
Its asset quality improved.
Gross NPAs shrank to 2.08 per cent from 2.35 per cent in the July-September period, while net NPAs decreased to 0.45 per cent from 0.54 per cent.
Canara Bank shares vs Nifty 50 vs Nifty Bank
As of Friday (intraday), Canara Bank shares have lost 12.7 per cent of their value so far this year, underperforming losses of 7.5 per cent and 7.0 per cent in the Nifty 50 and Nifty Bank indices, respectively.
In the past one year, the stock has outperformed most major private and public sector peers, delivering a return of around 41 per cent.
Canara Bank enjoys a weightage of 2.6 per cent in the Nifty Bank.
| Stock/index | 1 month return | 6 month return | 1 year return |
| Canara Bank | -3 | -3.1 | 41.4 |
| SBI | 2.1 | 14 | 41 |
| Bank of Baroda | -2.8 | -6.7 | 23.3 |
| PNB | -0.9 | -11.6 | 18.4 |
| HDFC Bank | -4.5 | -4.4 | -19.1 |
| ICICI Bank | -3.4 | -6.2 | -11.9 |
| Nifty 50 | 0.8 | -5.4 | -0.4 |
| Nifty Bank | -0.4 | -4.2 | 2.2 |
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