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The Reserve Bank of India (RBI) has approved Canara Bank's stake sale in its mutual fund and insurance arms through an Initial Public Offering (IPO). Reserve Bank of India vide its letter dated 5th December 2024 has accorded approval to our Bank for divesting its shareholding in Canara Robeco Asset Management Company Ltd and Canara HSBC Life Insurance Company Ltd by 13 per cent and 14.5 per cent respectively through Initial Public Offer. In March 2024, the bank had received board approval to sell stakes in the two subsidiaries.

RBI approves Canara Bank's stake sale in MF, insurance subsidiaries via IPO

Canara Bank has announced an increase in its Marginal Cost of Funds Based Lending Rate (MCLR) effective from December 12, 2024. The revision in MCLR will primarily affect borrowers with loans linked to Canara Bank's MCLR rates. This includes various types of loans, such as home loans, personal loans, and auto loans. Borrowers with floating rate loans will see a corresponding increase in their interest payments as their loan rates are directly linked to the MCLR.

Canara Bank increases MCLR rates on these tenures

Canara Bank launches unified UPI app ‘Canara ai1Pe’ for secure digital payments: Check features and benefits

Canara's gross NPA generation dropped to 0.79% in 9M FY2026 (from 1.18% in FY2025), significantly below historical 4–8% peaks. Combined with recoveries and write-offs, GNPA fell to 2.08% by December 31, 2025. Despite these gains, asset quality remains monitorable due to loan book seasoning and potential MSME or retail stress from macroeconomic shocks.



The issuer has made timely interest payments.

Shri K Satyanarayana Raju, MD and CEO

The GoI holds a 62.93% stake in Canara Bank as of December 2025. While the bank has not required GoI capital for four years—relying instead on ₹4,500 crore raised from markets and improved internal accruals—previous support of ₹18,234 crore (FY2018–FY2020) helped significantly reduce NNPAs. With comfortable capital cushions, the bank is now largely self-sufficient but maintains strong GoI backing if needed.



As of December 31, 2025, Canara Bank’s CET I (12.37%) and Tier I (14.60%) ratios exceed regulatory requirements, improving from March levels. Strong capital and falling NNPAs lowered the NNPA/core capital ratio to 5.34%. ICRA maintains the bank is well-positioned for growth, capable of absorbing stress with a >1% capital cushion and managing the RBI’s ECL framework through solid internal accruals.




Despite NIM compression, Canara Bank’s 9M FY2026 RoA rose to 1.12%, supported by ₹5,424 crore in trading gains and low credit costs of 0.38%. Controlled slippages and strong recoveries have offset moderated operating profitability. Moving forward, margins are expected to stabilize as interest spreads bottom out and non-interest income normalizes.




Bengaluru-based Canara Bank (62.93% GoI stake) integrated Syndicate Bank in 2020. As of late 2025, it manages ₹18.15 lakh crore in assets with a 5.91% share in advances and 6.55% in deposits. Supported by 10,066 branches and a solid 12.37% CET I ratio, the bank achieved a 1.12% RoA through strong trading gains and low credit costs, ensuring stable growth despite a lower 29.5% CASA base.


Security Name: 9.55% Canara Bank (P) Call : 05 Mar 2025

ISIN: INE476A08035

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