Canara Bank Share Price: State-owned Canara Bank on Monday, May 11, reported a 10 per cent year-on-year decline in standalone net profit to Rs 4,506 crore during the March quarter. The Bengaluru-headquartered bank had posted a net profit of Rs 5,002.66 crore in the same quarter a year ago. If you are planning to buy, sell, hold or add this stock to your portfolio. Here’s what you must know.
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Canara Bank Share Price: MOSL Bullish on bank stock – Reasons and latest TP
The brokerage firm, Motilal Oswal Financial Services, maintains a buy rating on Canara Bank, with a revised target price of Rs 160, down from Rs 175 earlier, despite a 10 per cent decline in standalone net profit. Here’s why.
- The bank reported a mixed quarter with healthy margins and controlled opex and provisions.
- Treasury loss and moderation in NIM guidance have resulted in a slight cut in their earnings
- Loan growth was steady, driven by retail, thus supporting yields
- Asset quality for the bank continues to be steady, while slippages saw some seasonality in 4Q.
- Cut earnings by 6%/4% for FY27E/FY28E, primarily due to lower NIM and other income assumptions, partly offset by a reduction in provisioning estimates.
- The brokerage expects Bank to deliver an RoA/RoE of 0.91%/16.2% in FY27E.
Canara Bank Share Price: Emkay bullish on bank stock – Check latest TP
The brokerage firm, Emkay, retains BUY, while trimming the target price by 6 per cent to Rs 160 from Rs 170, valuing the standalone bank at 1x FY28E ABV and subsidiaries/investments at Rs 11/share.
The brokerage further highlighted that Canara Bank (CBK) continues to deliver strong credit growth, at 16 per cent YoY, far outpacing its guidance – a phenomenon seen across PSBs.
After a continuous decline for the past 10 quarters, the margin surprised positively, up by 9bps QoQ, mainly due to lower CoF.
However, weak treasury performance led to a 14 per cent miss on earnings, with PAT at Rs 45 billion.
For FY27, the management guides conservative credit growth at 11-12%, but believes that, similar to FY26, it would largely surpass the guidance.
The bank will focus on protecting margins amid rising cost pressures. It expects ECL impact of Rs100bn (0.8% of loans), which looks manageable, in our view, given its healthy CET 1, at 12.4%.
The brokerage largely retains our earnings estimates and expects the bank to deliver 1% RoA over FY27-28E, and then moderate to 0.9% in FY29E.
Canara Bank Share Price: Morgan Stanley on bank stock
The brokerage firm, Morgan Stanley, maintains an underweight rating with a target price of Rs 103. Here’s why.
- The bank’s PAT beat was driven by lower provisions and higher non-core income.
- Gross slippages rise sharply QoQ to Rs28bn from Rs 19 billion
- NIM improves 9 bps QoQ to 2.54 per cent.
- Domestic loan growth at 15.1% YoY; deposit growth moderates to 7.9%
- Management quantifies ECL impact at Rs100bn over four years
- Brokerage expects ROA to 0.8% during FY27-29.
Canara Bank Q4 results
Standalone:
- Recommends Dividend Of Rs 4.20/Share
- Profit at Rs 4,506 Cr vs Rs 5,003 Cr [RD] 9.9% YoY
- NII At Rs 9,808 Cr Vs Rs 9,442 Cr [GU] 3.9% YoY
- Operating Profit At Rs 6,757 Cr Vs Rs 8,284 Cr [RD] 18.4% YoY
- Provisions At Rs 992 Cr Vs Rs 2,414 Cr QoQ & Vs Rs 1,832 Cr YoY
- Gross NPA At 1.84% Vs 2.08% QoQ
- Net NPA 0.43% Vs 0.45% QoQ
Canara Bank dividend
The bank recommended a dividend of Rs 4.20 per equity share for 2025-26, subject to approval by shareholders at the ensuing Annual General Meeting.
