Canara Bank share price target

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...

Canara Bank (CBK) reported Q4FY21 PAT of Rs 10bn aided by 6% QoQ growth in operating profit.

Canara Bank's (CBK) Q3 PAT of Rs 7bn beat our estimate on strong 47% YoY growth in operating profit.

Canara bank reported better than expected NII and PPoP growth of 29% and 32% YoY respectively on an amalgamated basis, driven by improved spreads, healthy growth in fee income, elevated treasury gains, and high recoveries from w/off accounts. Collection efficiency stood at 92-95% for the month of Sep, including past arrears. Management estimates ~Rs130bn or 2% of loans to be...

Canara Bank (CBK) reported a Rs 32.6bn loss as the bank consciously made higher wage and NPA-related provisions due to amalgamation.

Sub-par core earnings (PPoP/assets at 1.5%), elevated credit costs, and focus on merger could continue to pressurize earnings over the medium term. We have a REDUCE recommendation on the stock with...

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Bank expects Global NIM to reach 2.75% (currently 2.65%) going forward & aims at improving the bottom-line further with balanced thrust on both retail and corporate advances coupled with increased adoption of digitalization for efficiency improvement. Bank intends to continue with the growth in the retail advances while simultaneously focusing on improvement in corporate book with high rated corporate advances. Moreover, management is highly confident...

Persistent Systems (PSYS) reported below-par Q3FY19 revenues but a beat on margins. Digital business returned to growth after two quarters of QoQ decline. Despite onsite constraints, PSYS benefited from higher billing rates and a better offshore mix, which fueled EBITDA margins (+250bps QoQ). We upgrade the stock from REDUCE to ADD on attractive valuations post a 30% price correction since we initiated coverage in Jul'18. Baking in higher margins,...