Canara Bank Share Price Jumps Over 5% After Net Profit Rises 21% In Q1, Asset Quality Improves

Canara Bank Ltd. share price rose over 5% in Thursday's session after the bank posted an increase in its net profit during April–June. Moreover, the lender's asset quality also improved during the quarter.

Canara Bank reported that it net profit during April–June quarter increase 21.7% on the year to Rs 4,752 crore from Rs 3,905 crore. Its operating profit advanced 12.3% on the year to Rs 8,553 crore from Rs 7,616 crore.

The public-sector bank's net non-performing asset declined 7 basis points on the quarter to 0.63% in the first quarter of the current financial year. Canara Bank's gross non-performing assets fell 25 basis points on the quarter. The provisions rose 3% year-on-year basis to Rs 2,351 crore from Rs 2,282 crore.

Shortly after first-quarter earnings report, Canara Bank share price jumped 5.37% to Rs 113.59 apiece, the highest level since July 21. It was trading 5.26% higher at Rs 113.44 apiece as of 2:22 p.m., as compared to 0.55% decline in the NSE Nifty 50 index.

The stock advanced 0.69% in 12 months, and 12.98% on year-to-date basis. Total traded volume so far in the day stood at 3.4 times its 30-day average. The relative strength index was at 52.38.

Out of 19 analysts tracking the company, 13 maintain a 'buy' rating, four recommend a 'hold' and two suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.6%.