Canara Bank Q4 FY25 Profit Surges 33%, Declares 200% Dividend Amid Robust Credit Growth

Canara Bank reported a 33.19% year-on-year (YoY) rise in net profit, reaching ₹5,004 crore for the quarter ended March 31, 2025.

• Operating profit stood at ₹8,284 crore, up 12.14% YoY.

• Fee-based income grew 20.30% YoY to ₹2,335 crore.

• Earnings per share increased by 16.98%.

• The Board has recommended a final dividend of ₹4 per share (200% of the ₹2 face value), up from 161% last year.

Business Performance

• Global business rose by 11.32% YoY to ₹25,30,215 crore.

• Total deposits increased by 11.01% to ₹14,56,883 crore.

• Gross advances climbed 11.74% to ₹10,73,332 crore.

• Domestic deposits stood at ₹13,31,137 crore, up 9.56%.

• Domestic advances rose to ₹10,08,671 crore, up 11.06%.

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Retail and RAM Credit Growth

• RAM credit (Retail, Agriculture, MSME) grew 13.23% YoY to ₹6,10,127 crore.

• Retail lending jumped 42.80% YoY to ₹2,23,366 crore.
  • Housing loans grew by 13.57% to ₹1,06,167 crore.

  • Vehicle loans increased by 19.63%.

Asset Quality Improvement

• Gross NPA ratio improved to 2.94%, down from 4.23% in March 2024.

• Net NPA ratio improved to 0.70%, down from 1.27%.

• Provision Coverage Ratio (PCR) rose to 92.70%, an improvement of 360 basis points.

• Credit cost improved to 0.92%, and slippage ratio to 0.90%.

Capital Adequacy

• Capital Adequacy Ratio (CRAR) was at 16.33%:
  • CET1: 12.03%

  • Tier-I: 14.37%

  • Tier-II: 1.96%

Financial Inclusion and Priority Sector Lending

The bank exceeded all RBI-mandated norms for lending to priority sectors:

• 42.36% of credit to priority sector (norm: 40%)

• 20.05% to agriculture (norm: 18%)

• 13.42% to small/marginal farmers (norm: 10%)

• 19.25% to weaker sections (norm: 12%)

• 9.73% to micro enterprises (norm: 7.5%)

• 16.25% to non-corporate farmers (norm: 13.78%)

Branch and ATM Network

As of March 31, 2025, the bank had:

• 9,849 branches: 3,139 rural, 2,900 semi-urban, 1,944 urban, and 1,866 metro.

• 9,579 ATMs

• 4 overseas branches: London, New York, Dubai, and GIFT City (India)

About Canara Bank

Canara Bank is a leading public sector bank headquartered in Bengaluru, India. It was originally founded in 1906 in Mangaluru by Ammembal Subba Rao Pai. The bank became a part of the nationalised banking sector in 1969. Today, Canara Bank also operates international branches in cities like London, Dubai, and New York.

As of May 8, 2:01 PM IST, Canara Bank share price was trading at ₹96.49, up 3.01% for the day. The stock opened at ₹94.39 and touched an intraday high of ₹98.17 and a low of ₹92.93. The company has a market capitalisation of ₹87,510 crore, a price-to-earnings (P/E) ratio of 5.33, and a dividend yield of 3.34%. The stock’s 52-week high is ₹128.90, while the 52-week low is ₹78.60. The quarterly dividend amount currently stands at ₹0.81 per share.

Conclusion

Canara Bank’s strong Q4 performance reflects its sustained focus on credit growth, asset quality improvement, and profitability. With robust retail lending and stable fundamentals, the bank is well-positioned for continued growth in FY26.

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