Shares of Canara Bank rose 2% to their day’s high of Rs 132 on the BSE on Tuesday after it reported a consolidated net profit of Rs 4,506 crore for the March quarter, marking a decline of 10% from Rs 5,002 crore recorded in the same period last year.
The state-run lender posted net interest income (NII) of Rs 9,808 crore in Q4FY26, up 4% year-on-year (YoY) compared with Rs 9,442 crore in the corresponding quarter of the previous financial year. On a sequential basis, profit after tax fell 13% from Rs 5,155 crore reported in Q3FY26.
For the full financial year, the bank reported a 13% YoY increase in net profit at Rs 19,187 crore. On the business front, global business rose 12.11% year-on-year to Rs 28,06,226 crore as of March 2026. Global deposits grew 9.71% to Rs 15,68,678 crore, while gross global advances increased 15.30% year-on-year to Rs 12,37,548 crore.
Canara Bank shares: Should you buy, sell or hold?
Morgan Stanley has maintained its “Underweight” rating on Canara Bank with a target price of Rs 103, a downside of 21%. The brokerage said the bank’s profit after tax exceeded expectations, supported by lower provisions and higher non-core income. However, it noted that gross slippages rose sharply quarter-on-quarter. The Wall Street major expects the bank’s return on assets (ROA) to moderate to around 0.8% during FY27 to FY29.
Motilal Oswal has maintained its “Buy” rating on Canara Bank, while revising the target price to Rs 160 from Rs 175 earlier, an upside of 23%. The brokerage described the March quarter as mixed, supported by healthy margins, controlled operating expenses and stable provisions. However, treasury losses and lower net interest margin (NIM) guidance prompted slight earnings downgrades. Motilal Oswal has cut its FY27E and FY28E earnings estimates by around 6% and 4%, respectively, mainly due to lower NIM and other income assumptions. It expects the bank to deliver a return on assets (ROA) of around 0.91% and return on equity (ROE) of 16.2% in FY27E.
Elara Capital upgraded Canara Bank to “Accumulate” from “Reduce” and assigned a target price of Rs 140. The brokerage said Q4 profit after tax came in ahead of estimates, aided by lower provisions and stronger net interest income growth. While the brokerage believes core operating profitability remains weaker than peers, it said the recent underperformance in the stock has resulted in a more balanced risk-reward profile.
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