Canara Bank Q3 Results: Stock falls 5% after core income misses estimates, margins under pressure
Published on 29/01/2026 01:45 PM
Canara Bank Q3 Results: Stock falls 5% after core income misses estimates, margins under pressureAlthough Canara Bank's loan growth and deposit growth were higher than what the management had guided for the full year, its margins at the end of Q3 narrowed by over 30 basis points from last year.By Hormaz Fatakia January 29, 2026, 2:06:53 PM IST (Updated)2 Min ReadShares of state-run lender Canara Bank Ltd. fell up to 5.5% on Thursday, January 29, in response to its December quarter results, which missed expectations on a key metric.
Net Interest Income (NII) or core income earned by the lender increased by 1.1% from last year to ₹9,252 crore. A CNBC-TV18 poll had projected the figure to be ₹9,453 crore.
Net profit grew 25.6% from last year to ₹5,155 crore, higher than the CNBC-TV18 poll estimate of ₹4,932 crore. However, it must be noted that the increase in profitability is also due to a higher other income component. Other income for the quarter increased by 36% year-on-year to ₹7,899.4 crore from ₹5,802 crore last year.
Asset quality for the lender saw improvement from the previous quarter. Gross Non-Performing Assets stood at 2.08% from 2.35% in September, while Net NPAs stood at 0.45% from 0.54% in the previous quarter.
Provisions at the end of the quarter saw a marginal increase to ₹2,414 crore from ₹2,354 crore in September.
In its investor presentation, Canara Bank reported a 13.6% growth in its global advances from the same quarter last year to ₹11.92 lakh crore, while global deposits were up by 12.95% year-on-year to ₹15.21 lakh crore. Both loan growth and deposit growth were higher than the guided range provided by the lender.
Fresh slippages during the quarter narrowed marginally to ₹1,857 crore from ₹2,031 crore in September, while write-offs stood at ₹3,120 crore, lower than the ₹3,463 crore in September.
Net Interest Margins (NIMs) during the quarter narrowed by 33 basis points from last year to 2.5% from 2.83% from last year.
Shares of Canara Bank are trading 5.2% lower after the earnings announcement at ₹149.25. The stock is up 66% in the last one year.Continue ReadingFirst Published: Jan 29, 2026 1:17 PM ISTTagsCanara BankCanara Bank NPAQ3 resultsshare market today