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Informist, Monday, May 11, 2026

 

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--Canara Bank: Have loan pipeline of around INR 200 bln 
--CONTEXT: Comments from Canara Bank mgmt at post-earnings press meet 
--Canara Bank: No impact of West Asia war on corporate loan book 
--Canara Bk: See INR 180 bln-INR 200 bln loans to MSMEs per new credit line 
--Canara Bank: Conscious of pricing in bulk deposits 
--Canara Bk:Don't see any stress on small business loan book from W Asia war 
--Canara Bank: Expect NIM at 2.50-2.60% in FY27 
--Canara Bank: May announce fundraising plan in next 2-3 months 
--Canara Bank: Comfortable with liquidity coverage ratio around 118% 
--Canara Bk: May need INR 25 bln provisions under expected credit loss norms 

 

MUMBAI/NEW DELHI – Canara Bank is likely to announce fundraising plan for 2026-27 (Apr-Mar) in the next two to three months, the bank's top management said at a post-earnings press conference Monday. The bank has INR 40 billion and INR 30 billion of additional tier-I and additional tier-II bonds, respectively, up for maturity next year and plans to compensate this through fundraising, S. K. Majumdar, executive director of Canara Bank, said. 

    

"We will compensate (funds lined-up for maturity). But the actual plan, we will announce once the board approves. That will come back in subsequent interactions. Maybe in the next couple of months," Majumdar said. The bank has a corporate loan pipeline of around INR 200 billion, the bank's Managing Director and Chief Executive Officer Hardeep Singh Ahluwalia, said. 

 

The lender's net profit for the March quarter was INR 45.06 billion, down nearly 10% on year. The bank's total income was INR 366.62 billion, down from INR 373.53 billion in the year-ago period.

 

Talking about the Emergency Credit Line Guarantee Scheme 5.0, Ahluwalia said he expects INR 180 billion to INR 200 billion worth of loans to be given to micro, small, and medium enterprises under this scheme. The Union Cabinet Tuesday approved the new credit line scheme for Indian businesses amid uncertainties related to the West Asia war.  

The bank's management said it does not see any "stress" on the bank's corporate loan book or small business loan book because of the ongoing geopolitical tensions in West Asia. "...as and when some crisis comes, we will make your provisions as per the regulatory prescriptions," Ahluwalia said.

 

Although provisions were made due to the ongoing crisis in West Asia, the managing director said three big accounts of INR 65 billion have remained as special mention accounts for the last two years. For this INR 65 billion exposure, the bank has made provisions of around INR 18 billion, he said.

 

On the recent expected credit loss norms released by the Reserve Bank of India, to be implemented from Apr. 1, 2027, Ahluwalia said, "...we may require some provision in the range of 2,500 crores (INR 25 billion) Stage 2 in ECL (expected credit loss), where the regulatory floor is increased from 0.4% to 5%."

 

The bank expects the net interest margin at 2.50–2.60% in the current financial year, compared to 2.51% as of Mar. 31. The state-owned lender is conscious of pricing in bulk deposits and is comfortable with the liquidity coverage ratio around 118%, above the regulatory minimum threshold of 100%.  End

 

Reported by J. Navya Sruthi and Shweta 

Edited by Tanima Banerjee

 

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