Canara Bank to extend Rs 20,000 crore under credit scheme

Canara Bank Managing Director and CEO (In-Charge) Hardeep Singh Ahluwalia said the bank will be extending relief of about Rs 18,000-20,000 crore under the Union government’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0., which aims to provide credit guarantee coverage of 100 per cent for MSMEs and 90 per cent for non-MSMEs as well as airline sector.

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“We have already identified accounts where our exposure is Rs 90,000 crore and we will be extending about Rs 18,000-20,000 crore,” he said in a post earnings press conference.

Ahluwalia said the bank has not made any specific war impact related provisions.

However, he said there were three specific big accounts where the exposure is Rs 6,500 crore and under special mention account  (SMA) for last two years.

“We made a provision of Rs 1,800 crore prudent provision in these accounts, although it was not required. As and when the some crisis comes, we will make the your provisions as per the regulatory prescriptions,” Ahluwalia said.

On the Expected Credit Loss (ECL) norm which kicks in from 1 April 2027, he said the bank is adequately capitalised and profitable to absorb the provisions.

The public sector lender’s fourth quarter net profit declined nearly 10 per cent to Rs 4,506 crore, while net interest income increased nearly 4 per cent to Rs 9,808 crore when compared to same period last year.

Canara Bank’s gross NPA declined to 1.84 per cent in the fourth quarter from 2.94 per cent in the same period last year, while net NPA declined to 0.43 per cent from 0.70 per cent.

The bank’s domestic deposit increased to Rs 14,36,905 crore as at March 2026, up 7.95 per cent year on year.

Domestic Advances (gross) of the Bank stood at Rs 11,61,143 Cr as at March 2026 , up 15.12 from last year.

Net Profit for the year 2025-2026 stood at Rs 19,187 crore up by 12.69 per cent from last year.

Canara Bank is looking for an overall deposits growth of 9-10 per cent and advances growth of 11-12 per cent in FY2027, when compared to 9.71 per cent and 15.30 per cent in FY 2026 respectively.

Also read: Union Cabinet approves credit guarantee scheme

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