Canara Bank Reports 10% Decline in Q4 Profit Due to Treasury Losses
Treasury hit drags Canara Bank Q4 profit
The Economic Times
Image: The Economic Times
Canara Bank, based in Kolkata, India, reported a 10% decline in net profit to ₹4,506 crore for the March quarter, impacted by treasury losses linked to rising sovereign bond yields amid escalating tensions in West Asia. However, the bank's overall net profit for fiscal year 2026 rose by 12.7%.
- 01Canara Bank's Q4 net profit fell to ₹4,506 crore, down 10% year-on-year.
- 02The decline was attributed to treasury losses from rising sovereign bond yields.
- 03In contrast, the bank's net profit for the full fiscal year 2026 increased by 12.7%.
- 04Asset quality showed improvement with reduced provisions.
- 05The previous year's Q4 profit was ₹5,003 crore.
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Canara Bank, located in Kolkata, India, has reported a 10% decline in its net profit for the March quarter, amounting to ₹4,506 crore. This drop is primarily attributed to treasury losses that arose from a spike in sovereign bond yields following increased hostilities in West Asia. In comparison, the bank had posted a net profit of ₹5,003 crore in the same quarter last year. Despite this quarterly decline, Canara Bank experienced a positive trend for the entire fiscal year 2026, with net profit rising by 12.7% to ₹19,187 crore, up from ₹17,027 crore in the previous fiscal year. The bank also reported improvements in asset quality, indicated by a reduction in provisions.
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The decline in profits may lead to cautious lending practices, potentially affecting borrowers and the overall credit market.
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