MUMBAI, Jan 29, 2026, 13:48 IST
- Canara Bank reported a Q3 net profit of 5,155 crore rupees, up 25.6% from a year earlier; net interest income rose just 1%.
- Shares fell about 3% even as profits climbed; Indian benchmarks hovered near flat ahead of Sunday’s Union Budget.
- Traders zeroed in on the rupee sliding to a record low, alongside a packed schedule of PSU earnings from REC, HUDCO, and CONCOR.
Canara Bank’s shares dipped on Thursday even after the state-run lender posted a 25.6% rise in quarterly profit. Investors stayed on edge, concerned about the looming Union Budget and fresh pressure on the rupee.
The bank’s results arrive during a busy earnings season for state-linked firms and lenders, where good news can still trigger sell-offs if jitters dominate. With the Budget due Sunday, traders have pulled back on risk, watching closely for any policy clues that could impact credit demand or government spending.
Canara Bank reported a standalone net profit of 5,155 crore rupees ($about 560 million) for the December quarter, rising from 4,104 crore a year earlier. Net interest income (NII), which tracks the gap between interest earned on loans and interest paid on deposits, inched up 1% to 9,252 crore rupees.
Canara Bank dropped 3.36% to 152.50 rupees, after reaching an intraday high of 160.80 and slipping to a low of 150.60. The Sensex and Nifty showed little change late this morning. Metals and energy stocks edged higher, while some consumer and IT shares lagged.
Hitesh Tailor, research analyst at Choice Broking, expects Indian equities to open “flat to mildly negative,” pointing to a lower GIFT Nifty. (GIFT Nifty is a futures contract that traders watch for early cues on the Nifty 50’s open.)
Prashanth Tapse, senior vice president (research) at Mehta Equities, said the market is “bracing for volatility” ahead of the Budget. He noted that the Nifty held firm above key technical levels after a two-day rally.
Flows were crucial. Tailor noted that foreign institutional investors (FIIs) flipped to net buyers on Wednesday, ending a run of 15 straight days selling. On the other hand, domestic institutional investors (DIIs) maintained their buying streak. These major players—mutual funds, insurers, and overseas investors—commonly steer the market’s daily moves.
Sentiment took a hit from the currency side. The rupee opened close to 91.99 per U.S. dollar and even dipped above 92 briefly, marking a fresh record low. This rattled investors who were already on edge over global risk movements and volatile oil prices.
Thursday will bring earnings reports from several public-sector companies, including power financier REC, housing lender HUDCO, and logistics firm Container Corporation of India (CONCOR).
Shares of state-run Union Bank of India and Indian Bank, as well as Canara Bank, caught traders’ eyes as they swung with changes in rates and currency movements.
The biggest uncertainty today is policy. A conservative Budget on spending—or one that fails to ease deficit worries—could rattle the “risk-on” sentiment propping up certain market sectors. Investors may also pull back on bank earnings if funding costs jump suddenly or if bad-loan trends deteriorate in the weeks ahead.
The earnings calendar is still crowded, with key consumer and auto firms ready to release their results. Investors are eager for clues after the recent rally.
