Canara Bank Posts 33% Jump in Q4 Net Profit, Declares ₹4 Dividend for FY25

Strong earnings, improved asset quality, and a sharp decline in NPAs mark Canara Bank's robust Q4FY25 performance.

Canara Bank has wrapped up Q4FY25 on a high note with impressive profitability figures and a clear focus on operational efficiency, setting the tone for a promising financial year ahead.

Net Profit Soars 33% YoY in Q4FY25

Canara Bank reported a standalone net profit of ₹5,002.66 crore, a 33.15% increase compared to ₹3,757.23 crore in Q4FY24. This significant rise in net profit reflects improved asset quality, better provisioning, and strong loan growth across segments.

The bank also witnessed a rise in total interest income, reaching ₹31,002.04 crore, up from ₹28,807.35 crore in the same quarter last year. This marks a 7.62% growth year over year.

Operating Profit Growth and Dividend Declaration

Operating profit for Q4FY25 stood at ₹8,284 crore, registering a 12.14% YoY increase. However, despite higher profitability, the net interest income (NII) fell by 1.44% YoY to ₹9,442 crore due to margin compression.

The quarter's net interest margin (NIM) was 2.80%, down from 3.05% year over year, indicating tighter spreads.

In a move that will cheer shareholders, the board has recommended a dividend of ₹4 per share (200% on face value of ₹2) for FY25, pending shareholder approval.

Asset Quality Improvement and Provisioning Efficiency

One of the standout aspects of Canara Bank's performance was the sharp drop in non-performing assets (NPAs):

• Gross NPA declined to 2.94%, compared to 4.23% in Q4FY24.
• Net NPA reduced to 0.70%, significantly improving from 1.27% YoY.

Additionally, the provision coverage ratio (PCR) climbed to 92.70%, up from 89.10% last year, showcasing the bank's proactive stance on risk management.

Total provisions also dropped to ₹3,280 crore, down 9.64% YoY from ₹3,630 crore, easing the pressure on bottom-line performance.

Healthy Advances and Deposits Growth

Canara Bank demonstrated strong momentum in business growth:

• Global gross advances surged 11.74% YoY to ₹10,73,332 crore.
• Global deposits increased 11.01% YoY to ₹14,56,883 crore.

This growth highlights the bank's ability to expand its loan book while maintaining asset quality and deposit mobilization.

Operational Efficiency Shows Positive Trend

The cost-to-income ratio improved notably, decreasing to 47.55% in Q4FY25, compared to 50.08% a year earlier. This improvement signals better cost management and higher operating leverage.

Market Reaction and Share Performance

Canara Bank shares responded positively to the earnings announcement, trading 1.94% higher at ₹95.48 as of 2:10 PM on May 8. The positive sentiment reflects investor confidence in the bank's fundamentals and strategic direction.

Conclusion: A Solid Financial Year Close

Canara Bank's Q4FY25 results reflect strong financial discipline, improved risk management, and a solid business growth strategy. With a robust dividend declaration, lower NPAs, and rising profitability, the bank has laid a firm foundation for continued success in FY26.