Canara Bank Earnings Summary — Q1 FY2027
Canara Bank Reports Robust Profit Growth in Q1 FY2027 with Decadal Low Net NPA
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹32,957 Cr is 4.5% higher year-on-year.
- Revenue has compounded at 5.4% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹5,181 Cr is 62.2% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 12.8% annualised across the period.
- Operating margin stands at 68.5% in Q1 FY2027.
- Operating margin expanded by 1016 bps year-on-year.
- Over the last two years operating margin has expanded by 964 bps.
- PBT margin is 19.9%.
- Expense growth of -20.9% remained below revenue growth of 4.5%.
- Operating profit of ₹22,566 Cr is 22.8% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 79/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Stable | 32,957 | 31,839 | 30,938 | 32,072 | 31,523 | 31,496 | 30,751 | 30,182 | 29,173 | 29,286 |
| Expenses | Volatile | 10,391 | 8,871 | 4,002 | 13,251 | 13,141 | 12,124 | 10,752 | 12,066 | 12,010 | 13,198 |
| Operating Profit | Improving | 22,566 | 22,968 | 26,936 | 18,821 | 18,382 | 19,371 | 19,999 | 18,116 | 17,163 | 16,088 |
| Operating Margin | Improving | 68.5% | 72.1% | 87.1% | 58.7% | 58.3% | 61.5% | 65.0% | 60.0% | 58.8% | 54.9% |
| Other Income | Volatile | 6,739 | 4,700 | 2,152 | 9,942 | 8,086 | 8,761 | 6,679 | 7,824 | 7,793 | 8,098 |
| Interest | Stable | 22,737 | 22,024 | 22,709 | 22,412 | 21,992 | 21,556 | 21,163 | 20,427 | 19,534 | 19,226 |
| Depreciation | Insufficient data | — | — | — | — | — | — | — | — | — | — |
| Profit Before Tax | Improving | 6,567 | 5,644 | 6,379 | 6,351 | 4,475 | 6,576 | 5,515 | 5,513 | 5,422 | 4,960 |
| Tax | Improving | 1,703 | 1,263 | 1,510 | 1,485 | 1,472 | 1,478 | 1,354 | 1,412 | 1,445 | 1,167 |
| Net Profit | Improving | 5,181 | 4,574 | 5,254 | 4,850 | 3,195 | 5,070 | 4,214 | 4,188 | 4,068 | 3,952 |
| Net Margin | Improving | 15.7% | 14.4% | 17.0% | 15.1% | 10.1% | 16.1% | 13.7% | 13.9% | 13.9% | 13.5% |
Key Takeaways
- Standalone Net Profit for Q1 FY27 increased to ₹4,855.82 crore, showing steady sequential and annual growth.
- Asset quality continues to improve significantly, with Gross NPA falling to 1.57% from 2.69% YoY and Net NPA reaching a decade-low of 0.36%.
- Operating Profit before Provisions stood at ₹8,635.86 crore, a sharp recovery from the previous quarter's ₹6,757.38 crore.
- The Bank's Provision Coverage Ratio (PCR) remains exceptionally high at 94.76% on a standalone basis.
- Capital Adequacy Ratio (Basel III) strengthened to 17.17% in June 2026 compared to 16.52% in the same quarter last year.
- Retail Banking remains the primary revenue driver, contributing ₹19,908.64 crore to the total revenue for the quarter.
Management Guidance
Management focus remains on retail/SME growth following a clean-up of the balance sheet. Digital transformation (DBU identification) is a key strategic sub-segment. The bank has successfully transitioned its investment accounting, discontinuing the Investment Fluctuation Reserve (IFR) and transferring ₹1936.63 crore to General Reserves in line with new RBI directions.
Sentiment Shift
Improving
Consistent reduction in NPA Ratios and improved Return on Assets (1.04%) indicate a sustained turnaround following the Syndicate Bank merger integration.
Outlook
The outlook is positive driven by a decadal low in Net NPA (0.36%) and high Provision Coverage, though NIMs (Net Interest Margins) remain a focus area given the low CASA ratio compared to private peers. The bank is well-positioned for the current credit cycle with a CAR of 17.17%.
From the Annual Report (Key Quotes)
“Provision Coverage Ratio of the Bank as on 30.06.2026 is 94.76%.”
“In accordance with the RBI circular... the requirement to maintain the Investment Fluctuation Reserve (IFR) has been discontinued.”
“Percentage of Net Non Performing Assets stood at 0.36%.”
Official Quarterly Documents
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This summary is AI-generated from Canara Bank's latest quarterly filing and earnings call. For informational purposes only — not investment advice.