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Canara Bank Q4 Review: Limited Standard Provision Buffers, Modest Profitability Metrics Limit Valuations

Dolat Capital maintains 'Add' rating on Canara Bank shares, hikes target price post inline Q4 results

<div class="paragraphs"><p>Canara Bank guided for a 5 bps lower net interest margin for FY26E at 2.75-2.8% vs FY25.&nbsp; (Photo Source: Vishal Patel/ NDTV Profit)</p></div>
Canara Bank guided for a 5 bps lower net interest margin for FY26E at 2.75-2.8% vs FY25.  (Photo Source: Vishal Patel/ NDTV Profit)
Canara Bank reported an in-line quarter with sequentially stable NIM at 2.73% (+2 bps QoQ), healthy loan growth at 2.5% QoQ, controlled slippage at 1.1%, and improved PCR to 77% (+260 bps QoQ). PAT benefitted from Rs 11 billion of write-backs from govt guaranteed security receipts, with RoA at 1.25%.
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