Canara Bank share price target

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

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

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.

3QFY22) is in upward trajectory with continuous improvement in CD ratio. On the business front, the bank has been reporting stable credit growth (7% sequential jump seen in previous quarter) across segments. The bank's recoveries are in line with the guidance and we expect the credit cost to be below 2% for FY22 and FY23. Moreover, the bank has raised capital in FY21 which resulted in the CET -1 of 10.1% (at par); thus we believe the bank may raise capital from stake sales of AMC,...

Canara Bank (CBK) reported healthy 3QFY22 earnings led by robust NII/Loan growth and controlled provisions. Margin expanded 6bp QoQ aided by improvement in CD ratio. The bank further carried 25% provisions on its SREI exposure (75% coverage now) and provided for the entire pension liability of INR13.55b that resulted in a slight miss in net earnings even as PPoP stood broadly in line with estimates. On the business front, CBK reported a sharp 7% QoQ growth in loan book driven by the corporate portfolio (mainly NBFC segment) and guided for...

On the asset quality front, slippages were elevated at ~INR69b (annualised 4.2% of loans), mainly due to a large corporate account, while higher recoveries and upgrades aided an improvement of 8bp/25bp QoQ in the GNPA/NNPA ratio. Further, SMA overdue declined to ~2% of loans (v/s ~3.0% in 1QFY22), while restructured portfolio remained stable QoQ at 2.9% of loans. Overall, we expect CBK's credit costs to moderate from FY23E...