Canara Bank (CANBK) AI Stock Analysis

• Market Cap: ₹1.37T
• Dividend Yield: 2.66%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 7.1
• Beta (1Y): 1.47
• Revenue Growth: 8.89%
• EPS Growth: 19.79%
• Country: IN
• Employees: 82,638
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 5.30
• Shares Outstanding: 9,070,651,000
• 10 Day Avg. Volume: 1,071,263
• 30 Day Avg. Volume: 1,713,254
• PEG Ratio: 0.31
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 0.53
• P/FCF Ratio: -0.98
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: ₹157.00 ▲(1.85% Upside)

Canara Bank's strong financial performance and attractive valuation are the primary drivers of its overall score. The technical analysis indicates strong momentum, though caution is advised due to overbought signals. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market presence and effective product offerings, supporting long-term business sustainability.

Margin Improvement

Improved profit margins suggest effective cost management and operational efficiency, contributing to sustained profitability.

Cash Flow Strength

Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and returning value to shareholders.

Negative Factors

High Beta

A high beta indicates greater volatility compared to the market, which could lead to unstable stock performance in uncertain economic conditions.

Overbought Signals

Overbought technical signals could indicate potential short-term pullbacks, affecting investor sentiment and stock stability.

Lack of Earnings Call Data

The absence of earnings call insights limits transparency and investor understanding of management's strategic direction.

Canara Bank Business Overview & Revenue Model

Company Description

Canara Bank provides various banking products and services in India and internationally. It offers personal banking services, such as savings and deposits comprising savings accounts, current accounts, recurring deposits, fixed deposits, unclaimed deposits, deposit schemes for senior citizens, and re-investment plans; loan products, including housing, home improvement, vehicle, site, rent, teachers, gold, mortgage, housing-cum-solar, consumer, education, rain water harvesting, and other loans; life, general, and health insurance products; consultancy services, which cover personal tax assistance and investment counselling, estate and wills, private and charitable trustee, debenture and security trusteeship, and attorney ship services; foreign exchange and international banking services; mutual funds; and safe deposit lockers, depository, safe custody, and card services. The company also provides corporate banking products and services, including accounts and deposits, such as current, fixed, and recurring deposits; supply chain finance management; loans and advances comprising working capital finance, term loans, infrastructure financing, and export finance; syndication services; IPO monitoring services; and merchant and commercial banking, escrow bankers/ASBA, underwriting, and investment services. In addition, it offers NRI banking products and services, such as remittance facilities; loans and advances, such as home, home improvement, vehicle, rent, mortgage, and site loans; consultancy safe deposit lockers, safe custody, and attorney ship services; and investment and online trading facilities. Further, the company provides internet, micro, small, and medium enterprises banking services. As of March 31, 2022, it operated 9734 branches, including 777 specialized branches and 3 overseas branches; and 12,208 ATMs. Canara Bank was incorporated in 1906 and is headquartered in Bengaluru, India.

How the Company Makes Money

Canara Bank primarily generates revenue through interest income, which constitutes the bulk of its earnings. The bank earns interest from loans it disburses to individuals and businesses, including personal loans, home loans, and corporate loans. Additionally, Canara Bank earns non-interest income through various fees and commissions associated with its services, such as account maintenance fees, transaction fees, and service charges for financial products. Investment income from its holdings in government securities and other financial instruments also contributes to its revenue. Furthermore, the bank engages in wealth management and insurance services, which add to its overall earnings. Strategic partnerships with other financial institutions and technology firms enhance its offerings and operational efficiency, thereby boosting its profitability.

Canara Bank Financial Statement Overview

Summary

Canara Bank demonstrates strong financial performance with robust revenue growth, improved profit margins, and effective cost management. The balance sheet shows a healthy equity position and balanced leverage strategy, while cash flows indicate substantial operational cash generation and financial flexibility.

Income Statement

Canara Bank has demonstrated strong revenue growth over the years, with a notable increase from 2020 to 2025. The gross profit margin is robust, indicating effective cost management. The net profit margin has improved significantly, reflecting enhanced profitability. The EBIT and EBITDA margins have shown a healthy upward trend, indicating operational efficiency.

Balance Sheet

The balance sheet reveals a strong equity position with a healthy debt-to-equity ratio, suggesting a balanced leverage strategy. The return on equity has improved over the years, highlighting effective utilization of shareholder funds. The equity ratio indicates stability, with a significant portion of assets funded by equity, reducing financial risk.

Cash Flow

Cash flow analysis shows a substantial increase in operating cash flow, supporting expansion and shareholder returns. Free cash flow has grown significantly, enhancing financial flexibility. The operating cash flow to net income ratio is favorable, indicating effective cash generation relative to profits.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.58T	1.54T	1.38T	1.08T	928.10B	932.59B
Gross Profit	730.87B	710.70B	661.20B	553.77B	497.74B	480.76B
EBITDA	242.67B	242.51B	215.20B	159.84B	103.49B	49.74B
Net Income	166.67B	175.40B	152.79B	112.55B	61.25B	28.91B
Balance Sheet
Total Assets	17.78T	17.31T	15.35T	13.81T	12.59T	11.80T
Cash, Cash Equivalents and Short-Term Investments	2.06T	2.06T	1.51T	1.42T	1.82T	1.79T
Total Debt	1.20T	832.38B	600.61B	594.13B	478.01B	496.72B
Total Liabilities	16.68T	16.24T	14.42T	13.02T	11.88T	11.16T
Stockholders Equity	1.09T	1.05T	921.33B	780.54B	699.61B	624.10B
Cash Flow
Free Cash Flow	0.00	-835.84B	297.93B	-405.91B	979.70M	581.95B
Operating Cash Flow	0.00	606.69B	310.46B	-399.78B	9.19B	591.18B
Investing Cash Flow	0.00	-24.61B	-17.48B	-12.38B	-12.56B	-10.29B
Financing Cash Flow	0.00	-35.06B	1.29T	4.45B	40.35B	2.90B

Canara Bank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 154.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CANBK, the sentiment is Neutral. The current price of 154.15 is above the 20-day moving average (MA) of 151.09, above the 50-day MA of 147.63, and above the 200-day MA of 118.19, indicating a neutral trend. The MACD of 1.74 indicates Positive momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 25.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:CANBK.

Canara Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNIONBANK	81 Outperform	₹1.24T	6.70	―	3.15%	3.86%	19.14%
BANKBARODA	81 Outperform	₹1.55T	8.08	―	2.86%	4.40%	-3.84%
IDBI	76 Outperform	₹1.11T	11.98	―	2.08%	11.31%	37.17%
CANBK	75 Outperform	₹1.37T	7.12	―	2.66%	8.89%	19.79%
PNB	75 Outperform	₹1.41T	8.29	―	2.40%	12.10%	12.93%
INDIANB	74 Outperform	₹1.12T	9.95	―	2.07%	9.74%	12.56%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Canara Bank Corporate Events

Canara Bank Gives Executive Director Hardeep Singh Ahluwalia Interim Charge as MD & CEO

Canara Bank has announced that Executive Director Hardeep Singh Ahluwalia has been given additional charge as Managing Director and Chief Executive Officer from 1 January 2026, following the superannuation of incumbent MD & CEO K. Satyanarayana Raju on 31 December 2025. Ahluwalia, a veteran banker with more than three decades of experience across domestic and international operations and specialized roles in credit, recovery and leadership positions, will hold the role for up to three months or until a regular MD & CEO is appointed, ensuring continuity in top management during a key transition period for the state-owned lender and its stakeholders.

Canara Bank Files SEBI Cybersecurity Compliance and VAPT Audit Reports

Canara Bank has submitted compliance certificates and related reports to the stock exchanges confirming adherence to SEBI’s Cybersecurity and Cyber Resilience Framework (SEBI-CSCRF), as mandated under a 2024 SEBI circular. The bank has disclosed that it is classified as a Qualified Regulated Entity owing to its depository participant registration, and that a Vulnerability Assessment and Penetration Testing (VAPT) audit covering the period from 1 October to 17 November 2025 was conducted by AKS IT Services Pvt. Ltd., with the resulting cyber audit report presented to and approved by the bank’s Information Security Committee. The filing underscores the bank’s efforts to strengthen cyber-risk governance and demonstrate regulatory compliance in its capital markets-related activities, providing additional assurance to regulators, investors and other stakeholders about the robustness of its cybersecurity and resilience controls.

Canara Bank Completes Timely Interest Payout and Full Redemption of Rs 750-Crore Tier II Bonds

Canara Bank has notified the stock exchanges that it has timely completed the annual interest payment and full redemption of its unsecured, redeemable, non-convertible, fully paid-up, Basel III-compliant Tier II bonds with ISIN INE667A08047 on 18 December 2025. The bank credited a total of Rs 814.65 crore to bondholders’ accounts via electronic modes, comprising Rs 64.65 crore in annual interest and Rs 750 crore as principal redemption upon maturity, leaving no outstanding amount under this bond issue and underscoring the bank’s adherence to its debt obligations and regulatory disclosure requirements.

Canara Bank Faces RBI Penalty for Currency Chest Deficiencies

Canara Bank has been penalized by the Reserve Bank of India (RBI) with a monetary fine of Rs. 4,35,550 due to deficiencies such as a shortage of notes and mutilated notes in its currency chest balance. The inspection that led to this penalty was conducted by the RBI from October 29 to 31, 2025. Despite the penalty, the bank has stated that the financial impact is not significant, suggesting minimal disruption to its operations or financial standing.

Canara Bank Appoints Sunil Kumar Chugh as Executive Director

Canara Bank has announced the appointment of Shri Sunil Kumar Chugh as its new Executive Director, effective from November 24, 2025. With over three decades of experience in the banking sector, Chugh brings extensive expertise from his previous roles in five public sector banks, including leadership in corporate credit and financial inclusion. This strategic appointment is expected to strengthen Canara Bank’s leadership team and enhance its operational capabilities, potentially impacting its market positioning positively.

Canara Bank Announces Management Changes

Canara Bank announced the cessation of Mr. Prabhat Kiran as ‘Other’ of the company effective November 24, 2025. In a related development, Mr. Prabhat Kiran, previously Chief General Manager at Canara Bank, has been appointed as Executive Director at Bank of Maharashtra for a three-year term. This change is part of a broader management restructuring, potentially impacting the bank’s strategic direction and stakeholder relations.

Canara Bank Announces Leadership Change

Canara Bank announced the completion of Shri Vijay Srirangan’s tenure as the Non-Executive Chairman and Part-Time Non-Official Director on the Board of the Bank, effective from the closure of business hours on November 6, 2025. This change in leadership may influence the bank’s strategic direction and governance, impacting its stakeholders and market positioning.

Canara Bank Announces Q2 Financial Results Schedule

Canara Bank has announced a schedule for a media meet and earnings conference call to discuss its unaudited financial results for the second quarter and half-year ending September 30, 2025. The bank will hold a media interaction on October 30 and 31, 2025, followed by an earnings call with analysts and investors on October 30. This announcement is significant as it provides stakeholders with insights into the bank’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

Canara Bank Reduces Stake in Canara HSBC Life Insurance

Canara Bank has announced the divestment of its stake in Canara HSBC Life Insurance Company Limited, reducing its holding from 51% to 36.50% through an Initial Public Offering. This strategic move led to the listing of Canara HSBC Life Insurance on the National Stock Exchange of India Limited and BSE Limited, marking a significant development in the company’s operations and potentially impacting its market positioning and stakeholder interests.

Canara Bank’s Subsidiary Files for Public Offering

Canara Bank has announced that its subsidiary, Canara HSBC Life Insurance Company Limited, has filed a Red Herring Prospectus with the Registrar of Companies. This move is a significant step towards a potential public offering, which could enhance the subsidiary’s market presence and provide additional capital for expansion, potentially impacting Canara Bank’s overall market positioning and offering new opportunities for stakeholders.

Canara Bank’s Subsidiary Files Red Herring Prospectus

Canara Bank announced that its subsidiary, Canara Robeco Asset Management Company Limited, has filed a Red Herring Prospectus with the Registrar of Companies. This move indicates a strategic step towards potential public offering, which could enhance the subsidiary’s market positioning and provide growth opportunities.