Canara Bank share price target

ff The Management expects quarterly fresh slippages run rate to moderate to ~Rs20bn in remaining quarters of FY19. Maintaining its fresh slippage guidance of Rs100bn for full FY19, the Bank expects recovery to the tune of Rs160bn (vs. Rs42bn in 1QFY19). Thus, it expects...

ff The Management expects quarterly fresh slippages run rate to moderate to ~Rs20bn in remaining quarters of FY19. Maintaining its fresh slippage guidance of Rs100bn for full FY19, the Bank expects recovery to the tune of Rs160bn (vs. Rs42bn in 1QFY19). Thus, it expects...

ff The Management clarified that the Bank (a) has not availed RBI's dispensation of spreading MTM loss over next 4 quarters; (b) continues to provide 50% on secured exposure towards accounts referred to NCLT vs. 40% permitted by the RBI; (c) has fully provided for incremental...

NII fell to Rs. 2987.59 Cr in Q4FY18 compared to Rs. 3679.13 Cr in Q3FY18. Canara Bank Q4FY18 results Comment

Canara bank reported higher NII of INR 36.8bn (52% y-o-y & 32% q-o-q) as there was a onetime income on interest on income tax refund of INR 7.4bn. Net total Income of INR 52.4bn (25% y-o-y & 11% q-o-q) & total opex of INR 24.1bn (9% y-o-y & 8% q-o-q) resulted in lower cost to income ratio of ~46% (-686bps y-o-y & -143 q-o-q). Elevated provisions of INR 26.7bn (80% y-o-y & 24% q-o-q) resulted in lower PAT of INR 1.25bn (-61% y-o-y & -52% q-o-q). Loan book stood at INR 3.73tn (13% y-o-y & 4% q-o-q) for the quarter. GNPA in absolute terms remained stable at INR 403bn (3% q-o-q) as both...

Canara Bank (CBK) reported decent Q3FY18 driven by pick-up in advances (up ~13% YoY), uptick in NIM (up 5 bps QoQ to 2.39%) and improvement in headline asset quality (GNPLs at 10.4%; down 13 bps QoQ).

Credit Cost to Remain Elevated in the Medium-term; Maintain HOLD Canara Bank has reported a higher-than-expected bottom-line growth in 3QFY18 led by onetime interest income from IT refund (Rs7.4bn) and higher cash recovery of Rs15.3bn vs. Rs10.2bn in 3QFY17. As a result, its net profit stood at Rs1.3bn (-60.9% YoY & -51.7% QoQ) vs. our estimates of Rs4.2bn net loss. However, from asset quality perspective, the Bank demonstrated sustained improvement with fresh slippages declining to the lowest level of Rs26.4bn in last one year. Further, its impaired loan portion also declined to 12.2% in Dec'17 from 12.7% and 13.6% in 2QFY18 and 3QFY17, respectively. Loan book grew by 4.1% QoQ and 12.5% YoY to Rs3,731bn during the quarter. As the Bank consciously slowed down deposit growth to 1.5% QoQ and -1.3% YoY; its...

Canara bank reported better NIMs at 2.60% (25bps y-o-y & 4bps q-o-q) led by improvement in C/D ratio 72.2% (462bps y-o-y & 161bps q-o-q). Non-interest income grew 9% y-o-y & -8% q-o-q led by recovery in w/off a/c's to INR19.3bn. GNPA in absolute terms grew marginally (4% q-o-q) led by reduction in slippages (39% q-o-q) and higher recoveries (55% q-o-q). Controlled opex (8% y-o-y) resulted in higher PPOP (16% y-o-y). However, elevated provisions (36% y-o-y) resulted in lower PAT of 2.6mn (-27% y-o-y)....

Canara Bank (CBK) reported a decent Q2, driven by pick-up in advances (up 10% YoY), stable NIM (2.34%; flat QoQ) and headline asset quality (GNPLs at 10.5%; down 5 bps QoQ) and 56 bps QoQ improvement in CASA deposits to 31.2% leading to in-line PAT of Rs 2.6 bn (down 27% YoY).

Elevated Credit Cost Continue to Impede Performance Canara Bank has delivered a healthy operating performance in 2QFY18. Its operating profit surged by 15.8% YoY and 0.3% QoQ to Rs24.8bn led by strong growth in NII (14.1% YoY & 2.6% QoQ to Rs27.8bn) and relatively lower opex (7.5% YoY and -4.7% QoQ) of Rs22.4bn. However, provisioning expenses remained at elevated level of Rs21.6bn (36% YoY & -2.1% QoQ) due to higher stressed assets in balance sheet. Resultantly, the Bank's net profit declined by 27.1% YoY (+3.4% QoQ) to Rs2.6bn. On the other hand, loan book improved by 9.5% YoY and 4.5% QoQ led...