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Canara Bank (CANBK) AI Stock Analysis
Canara Bank
(NSE:CANBK)
Canara Bank's solid overall score is primarily driven by an outstanding earnings report and a highly attractive valuation. Management delivered record profits, robust broad-based growth, and better-than-guided asset quality, further supported by a deep-value P/E ratio of 5.7 and a reliable dividend. However, these fundamental strengths are partially offset by underlying financial vulnerabilities—namely rising leverage and negative cash flows—as well as sustained bearish technical trends.
Canara Bank (CANBK) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 1.07T
- Dividend Yield
- 3.55%
- Average Volume (3M)
- 798.98K
- Price to Earnings (P/E)
- 5.2
- Beta (1Y)
- 1.28
- Revenue Growth
- -6.75%
- EPS Growth
- 6.41%
- Country
- India
- Employees
- 81,827
- Sector
- General
- Sector Strength
- 55
- Industry
- Banks - Regional
Canara Bank Business Overview & Revenue Model
Company Description
Canara Bank, established in 1906 and headquartered in Bengaluru, India, delivers a comprehensive suite of banking and financial services to clients across India and internationally. The bank caters to individual customers with a diverse range of depo...
How the Company Makes Money
Canara Bank primarily makes money through interest-based income and fee-based income generated from providing banking services. 1) Net interest income (NII): The bank earns interest on loans and advances (e.g., retail loans, MSME and corporate lendin...
Canara Bank Earnings Call Summary
The call was strongly positive overall. The bank reported record quarterly profit, 20.39% growth in net interest income, robust 15.88% business growth, 19.46% advance growth, improved asset quality, lower credit cost and slippages, and performance above nearly all stated guidance metrics. Management also highlighted strong capital, liquidity, retail demand, and a sizeable corporate pipeline. The principal challenges were the CASA ratio remaining below guidance, treasury and mark-to-market losses, the potential INR 12,000 crore-INR 15,000 crore ECL-related provisioning requirement, and limited current monetization from digital payments. These lowlights were explicitly discussed but did not outweigh the reported operating and financial improvements.
Q2-2027 Updates
Positive Updates
Negative Updates
Company Guidance
For FY 2027, Canara Bank’s guidance was total business growth of 10%-11%, advances growth of 11%-12%, deposit growth of 9%-10%, CASA “in between the range of 30%-32%,” NIM of 2.5%-2.60%, gross NPA of 1.50%, net NPA “around 0.40%,” slippage ratio of 0.80%, credit cost of 0.75%, return on equity of 16.5%, earning per share of INR 20, and return on assets of 1.01%-1.05%; management said it would be able to sustain NIM at 2.55%, expected a “good quarter” going further, described the pipeline as around INR 47,000 crore, “in and out, INR 50,000 crore,” and said ECL provisioning could be somewhere INR 12,000 crore-INR 15,000 crore, maybe a INR 14,000 crore -INR 15,000 crore, while if oil prices comes down and de-escalation in political scenario happens, it may come back to the previous forecast of INR 10,000 crore- INR 12,000 crore.
Canara Bank Financial Statement Overview
Summary
Canara Bank presents a mixed financial profile. While it demonstrates strong net income growth and solid asset accumulation, these positives are significantly offset by top-line revenue contraction, a sudden spike in leverage driving the debt-to-equity ratio to 1.32, and recurring negative operating cash flows.
Income Statement
75PositiveBalance Sheet
65PositiveCash Flow
40Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.49T | 1.53T | 1.54T | 1.38T | 1.08T | 928.10B |
| Gross Profit | 513.70B | 558.23B | 710.70B | 661.20B | 553.77B | 497.74B |
| EBITDA | 255.75B | 256.06B | 242.51B | 215.20B | 159.84B | 103.49B |
| Net Income | 203.90B | 197.06B | 175.40B | 152.79B | 112.55B | 61.25B |
Balance Sheet | ||||||
| Total Assets | 20.38T | 18.87T | 17.31T | 15.35T | 13.81T | 12.59T |
| Cash, Cash Equivalents and Short-Term Investments | 2.09T | 2.06T | 2.06T | 1.51T | 1.42T | 1.82T |
| Total Debt | 1.68T | 1.55T | 832.38B | 600.61B | 594.13B | 478.01B |
| Total Liabilities | 19.10T | 17.70T | 16.24T | 14.42T | 13.02T | 11.88T |
| Stockholders Equity | 1.28T | 1.18T | 1.05T | 921.33B | 780.54B | 699.61B |
Cash Flow | ||||||
| Free Cash Flow | 0 | -185.45B | -835.84B | 297.93B | -405.91B | 979.70M |
| Operating Cash Flow | 0 | -172.56B | 606.69B | 310.46B | -399.78B | 9.19B |
| Investing Cash Flow | 0 | -1.56T | -24.61B | -17.48B | -12.38B | -12.56B |
| Financing Cash Flow | 0 | 1.74T | -35.06B | 1.29T | 4.45B | 40.35B |
Canara Bank Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CANBK, the sentiment is Negative. The current price of 118.35 is below the 20-day moving average (MA) of 118.96, below the 50-day MA of 122.63, and below the 200-day MA of 131.08, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 46.15 is Neutral, neither overbought nor oversold. The STOCH value of 44.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CANBK.
Canara Bank Peers Comparison
Overall Rating
IN:SBIN82Outperform
IN:PNB80Outperform
IN:UNIONBANK75Outperform
IN:INDIANB72Outperform- IN:CANBK72Outperform
IN:BANKBARODA71.25Outperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:SBIN | 82Outperform | INR 8.87T | 10.30 | ― | 1.80% | 6.56% | 4.93% |
| IN:PNB | 80Outperform | INR 1.41T | 6.19 | ― | 2.45% | 2.89% | 34.19% |
| IN:UNIONBANK | 75Outperform | INR 1.41T | 6.45 | ― | 2.70% | 0.31% | 19.01% |
| IN:INDIANB | 72Outperform | INR 1.17T | 8.82 | ― | 2.11% | 12.44% | 17.22% |
| IN:CANBK | 72Outperform | INR 1.07T | 5.23 | ― | 3.55% | -6.75% | 6.41% |
| IN:BANKBARODA | 71Outperform | INR 1.23T | 6.79 | ― | 3.56% | 8.17% | 2.75% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:CANBK | Canara Bank | 118.35 | -16.79 | -12.43% | |
| IN:BANKBARODA | Bank of Baroda | 238.50 | -43.48 | -15.42% | |
| IN:INDIANB | Indian Bank | 865.00 | 2.46 | 0.29% | |
| IN:PNB | Punjab National Bank | 122.50 | 2.54 | 2.11% | |
| IN:SBIN | State Bank of India | 961.00 | 27.58 | 2.95% | |
| IN:UNIONBANK | Union Bank of India Limited | 185.20 | 38.63 | 26.35% |
Canara Bank Corporate Events
Canara Bank Details Rs 53,445 Crore in Outstanding Bonds in Half-Yearly Debt Statement
Canara Bank has filed its half-yearly statement of debt securities outstanding as of 30 September 2026, detailing a portfolio of bonds that includes both dated and perpetual instruments with various call options across future financial years. The dis...
Canara Bank Timely Pays Rs 377-Crore Annual Interest on Long-Term Bonds
Canara Bank has confirmed that it has paid the annual interest on its non-convertible, taxable, redeemable, unsecured fully paid-up long-term bonds with ISIN INE476A08191 on schedule. The interest, amounting to Rs 377 crore on an issue size of Rs 5,0...
Canara Bank Elevates Sunil Kumar Yadav to Chief General Manager
Canara Bank has promoted General Manager Shri Sunil Kumar Yadav to the position of Chief General Manager, effective September 1, 2026, as part of a change in senior management. Yadav, who joined the bank in 2000 as a Probationary Agriculture Officer...
RBI Fines Canara Bank for Irregularities in Currency Chest Remittances
The Reserve Bank of India has imposed a monetary penalty of Rs 1,49,450 on Canara Bank for deficiencies related to currency chest remittances, including shortages, mutilated notes and counterfeit notes detected in CC remittances. The bank has stated...
Canara Bank Posts Q1 Results, Shares Earnings Call Recording with Investors
Canara Bank has notified the stock exchanges that it held an earnings and conference call with analysts and investors on July 27, 2026, to discuss its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The ba...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 15, 2026