Canara Bank share price target

PAT below estimates due to Other income but partially offset by lower provisions. Advances growth largely led by RAM segment

Good quarter due to superior NII/NIM and lower opex NIM guided to remain range bound in FY27 over FY26 We upgrade to ACCUMULATE' on comfortable valuations CBK saw a good quarter as core PPoP was ~13% ahead of PLe driven by higher NII/NIM and lower opex. Reported NIM performance was better to peers since it rose by 9bps QoQ driven by (1) fall in deposit cost and (2) healthy retail growth at 8.6% QoQ. NIM for FY27 is guided to be between 2.5-2.6% (FY26 2.51%). Provisions may remain stable at 0.75% despite ECL impact which could be INR 100bn or 9% of equity, primarily...

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.