Canara Bank share price target

PAT largely aided by Other income & lower provisions; advances growth largely led by RAM segment

Canara Bank (CBK) reported 3QFY26 standalone PAT at INR51.6b (26% YoY/ 8% QoQ, 15% higher than MOFSLe) amid stake sale gains, which resulted in pre-tax profit of INR19.3b.

PAT largely supported by other income; advances growth largely led by retail credit and was higher vs system levels

PAT largely aided by other income; advances growth largely led by retail credit and was higher vs system levels

CBK reported 1QFY26 standalone PAT of INR47.5b (15% beat), up 21.7% YoY/down 5% QoQ, aided by a healthy beat in other income.

Canara Bank posted a 20% beat on earnings at Rs50bn/1.3% RoA, mainly aided by treasury gains/recovery from written-off loans and provision reversal on SR investments. Credit growth outpaced expectations at 12.6% YoY/2.5% QoQ, while deposit growth was strong at 11% YoY/6.4% QoQ.

Pearl in an oyster

Canara Bank (CBK) reported 3QFY25 standalone PAT at INR41b (12.3% YoY growth, in line) because of higher other income, partly offset by lower NII and higher provisions.

Despite continued contraction in margins due to lower loan yields/other interest income, and higher provisions, Canara Bank posted in-line earnings with PAT at Rs41bn/1% RoA, mainly aided by higher other income (especially treasury gains/recovery from written-off loans).

Canara Bank (CBK) reported 2QFY25 standalone PAT at INR40b (11.3% YoY growth, 6% beat) driven by lower opex.

Despite margin slip in 1Q due to seasonal factors and change in recognition of penal interest into other income, Canara Bank reported largely in-line earnings with PAT at Rs39bn/1% RoA.

Canara Bank (CBK) reported 1QFY25 standalone PAT of INR39.1b (up 10.5% YoY, in line), driven by lower provisions.