NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
Canara Bank reported a mixed quarter with healthy margins and controlled opex and provisions; however, treasury loss and moderation in net interst margin guidance have resulted in a slight cut in Motilal Oswal's earnings.
Loan growth was steady, driven by retail (gold loans), thus supporting yields. Cosf of funds declined by 9bp as the bank has increased its focus towards retail deposits (cheaper vs. bulk, despite the deposit rate hike in Dec'25).
Canara Bank endeavors to perform better than its loan growth guidance of 11-12%. Asset quality for the bank continues to be steady, while slippages saw some seasonality in Q4. The bank has stated that its expected credit loss transition impact was Rs 10,00 crore and the impact on CRAR was up to 100bp, while Canara Bank maintains its guidance of 1% RoA despite the transition impact.
The brokerage has cut its earnings by 6%/4% for FY27E/FY28E, primarily due to lower NIM and other income assumptions, partly offset by a reduction in provisioning estimates.
The brokerage expects Canara Bank to deliver an RoA/RoE of 0.91%/16.2% in FY27E.
Motilal Oswal reiterates Buy rating with a revised target price of Rs 160 (based on 1.2x Sep'27E adjusted book value + Rs 12 for subsidiaries).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
