India’s state-owned Canara Bank, headquartered in Bengaluru, Karnataka, has posted a 33.15% year-on-year increase in its net profit to ₹5,002.66 crore for the quarter ended March 31, 2025. The bank declared a 200% dividend (₹4 per share) for FY25 and reported improvements in asset quality and operating performance despite a slight dip in net interest income.
India’s state-owned lender Canara Bank, headquartered in Bengaluru, Karnataka, reported a 33.15% year-on-year (YoY) increase in its standalone net profit for the quarter ending March 31, 2025. The bank posted a profit of ₹5,002.66 crore, compared to ₹3,757.23 crore in the same period last year, driven by higher interest income and improved asset quality.
Canara Bank, a major public sector bank in India with a wide network of branches and digital banking services, also announced a 200% dividend, translating to ₹4 per equity share on a face value of ₹2, for FY25. The dividend is subject to shareholder approval.
The bank’s total interest income for the quarter rose 7.62% YoY to ₹31,002.04 crore, while its operating profit grew 12.14% YoY to ₹8,284 crore. However, net interest income (NII) dropped 1.44% YoY to ₹9,442 crore, and the net interest margin (NIM) declined 25 basis points to 2.80%.
Despite this dip, Canara Bank’s cost efficiency improved. The cost-to-income ratio fell 253 basis points YoY to 47.55%, indicating better management of operating expenses.
A significant highlight was the improvement in asset quality. The gross non-performing assets (NPA) ratio declined to 2.94% from 4.23% a year earlier, and net NPA dropped to 0.70% from 1.27%. The provision coverage ratio (PCR) also strengthened, rising to 92.70% from 89.10% YoY, with total provisions decreasing 9.64% to ₹3,280 crore.
On the business front, global gross advances rose 11.74% YoY to ₹10,73,332 crore, while global deposits increased 11.01% to ₹14,56,883 crore.
Following the results, Canara Bank shares traded 1.94% higher at ₹95.48 on the stock exchange around 2:10 PM on May 8.
