CANBK

Fundamental View- Canara Bank Ltd., one of India’s top public-sector banks, delivered a robust Q4 FY25 performance with net profit soaring 33% YoY to ₹5,004 crore, driven by strong non-interest income, a 12% rise in operating profit, and efficient cost management. Its asset quality has significantly improved—gross NPA declined to 2.94% and net NPA dropped to 0.70%, backed by a high provision coverage ratio of 93%. The bank reported healthy credit growth (11–12% in advances and deposits), saw retail loan growth surge 43%, and maintained a CASA ratio around 31%. Capital adequacy remains strong with a CRAR of 16.3%, including CET 1 at 12%. Canara Bank declared a generous dividend of ₹4/share (200% of face value). Overall, the bank exhibits solid earnings momentum, improving asset quality, and healthy capital and funding metrics, making it a fundamentally strong PSU banking pick. Technical View- As observed on the daily chart, the stock is currently presenting a good buying opportunity. In the short term, it is taking strong support near its 14-day EMA, indicating underlying strength. On June 19, 2025, the stock took support around ₹104.60 along with the 55-day EMA and witnessed a reversal from that level. Currently, the stock is showing signs of a pullback, and steady upward movement can be expected. This stock generally moves gradually but steadily towards its targets, making it suitable for long-term portfolio holding. On June 24, the stock opened with a gap-up and has been holding above its 14-day EMA since then. The technical indicators such as MACD, RSI, and Parabolic SAR dots are also reflecting a bullish sentiment. Therefore, any dip towards lower levels can be considered a good entry opportunity. With a stoploss of ₹110, short-term positions can be initiated, and on the upside, the stock has the potential to reach levels of ₹125–126. Warning- ***** *****