Canara Bank

Canara Bank

CANBK

 ₹ 116.78
 ₹ 2.08
1.81%
Modeled data

Canara Bank  
Market Sentiment

TimelineReturnsVolume
Daily1.66%98,67,675
Weekly-0.30%4,91,85,877
Monthly-3.67%44,50,85,665

Canara Bank  
Performance

TimelineDailyWeeklyMonthly
CANBK1.66%-0.30%-3.67%
Index---4.81%
Peer Avg.0.92%1.33%-2.21%
*Avg of index constituents

Canara Bank  
Fundamentals

TimelinePEPBEV/EBIDTAROEROCEDiv. Yield
CANBK7.010.692.0510.2610.972.00
Index35.445.9816.8116.9918.411.19
Peer Avg.10.090.705.247.888.301.30
*Avg of index constituents

Canara Bank  
Key Metrics

MetricsSales GrowthProfit GrowthROEROCE
FY '21-220.35%118.25%10.26%10.97%
FY '20-2141.38%224.00%6.10%7.10%
FY '19-204.15%-606.96%-6.63%0.81%

Canara Bank  
Shareholding Pattern

PromotersFIIDIIPublicOthers
Promoters : 62.93%
FII : 8.48%
DII : 13.61%
Public : 14.97%
Others : 0.01%

Canara Bank  
Profit & Loss

MetricsSalesExpenditureEBITDAPAT
FY '21-2270,012.0181,028.729,053.295,736.75
FY '20-2169,766.8784,977.723,794.392,629.78
FY '19-2049,346.8760,787.69-1,634.53-2,129.11
All values are in crores

Canara Bank  
Peer Comparison

MetricsSalesExpenditureEBITDAPAT
CANBK70,012.0181,028.729,053.295,736.75
IOB16,732.8519,858.101,778.931,709.41
PNB75,560.6883,314.074,455.433,566.46
All values are in crores

Canara Bank  
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Canara Bank Share Price

Fundamental analysis of Canara Bank

Thanks to the nationalisation of banks in 1969, the banking sector in India was saved from monopolisation. Today, there are various commercialised banks operating in the country, and Canara Bank is one of them!

This public sector bank spread its wings in the then-small town of Mangalore, and today it has a customer base of over 11.17 crore customers! However, being the third largest nationalised bank, does it really have the potential to capture a larger market share, explore growth opportunities and boost Canara Bank share price or has it reached its saturation point?

Let us dive into the finances of this company and also find out more about Canara Bank share price forecast in this blog!

Canara Bank

It was July 1906 when a visionary, Shri Ammembal Subba Rao Pai, established Canara Bank in the then-small port town of Mangalore, and by 1976, it had already established its 1000th branch. Following the nationalisation of banks in 1969, Canara Bank’s growth trajectory changed forever for the better.

Between 1992 and 1993, it became the first bank to adopt the “Good Banking” directive principles, and with its initiatives such as the “Mahila Banking Branch” between 2001 and 2002, which caters exclusively to women's clientele, it gained great recognition.

Since its inception, Canara Bank has been working extensively to emerge as a giant financial conglomerate, and today it has 13 subsidiaries in India and abroad. In addition, Canara Bank also has a total of 9604 branches with over 12, 155 ATMs/Recyclers across the Indian subcontinent.

Canara Bank also has offices in international cities such as New York, London, and Dubai.

Should you invest in the banking sector?

Historically, the banking sector has been one of the most stable systems in the country despite a multitude of global upheavals. There is a total deposit of $2.17 trillion+ across 1,23000+ branches across India. So, to answer your question, the banking sector is one of the most important sectors in any economy, and investing in the banking sector can be a good idea for value investors.

If you look at the past Canara Bank share history or any other bank’s share price history, they have grown consistently. Apart from this consistent growth, the banking sector derives revenue from various sources, ensuring a stable cash flow.

According to research, it is predicted that by 2030, India is set to become the third-largest consumer economy, with over 65% of people being below the age of 35. The banking sector also reported a credit-deposit ratio of 75.8% at the end of FY23, which is the highest in the past three years.

When you take a look at the Nifty Bank index, it has grown over 18% over the past year, implying that these stocks are some of the best for long-term investors whose primary objective is long-term capital appreciation and growth!

Who are Canara Bank’s competitors in the banking sector?

The banking sector is highly competitive, and therefore, Canara Bank has multiple competitors. Some of them are listed below:

History of Canara Bank and Canara Bank share price target

Let us explore Canara Bank more before delving into its financial aspects.

  • Incorporation: Canara Bank is one of the largest banks owned by the Government of India. This bank was established in July 1906 in the port city of Mangalore by Shri Ammembal Subba Rao Pai.
  • Service range: Canara Bank offers an extensive range of services in the financial sector, including personal banking, corporate banking, NRI banking, priority, and SME credit. In addition, it also offers a range of financial products, such as debit and credit cards.
  • Infrastructure: Canara Bank has recently partnered with Kyndryl to modernise its IT infrastructure. This initiative was taken to improve operational excellence, profitability, and scalability. This company spent about Rs. 1,200 crores on new technology initiatives in 2023 alone.
  • Certifications: In 1996, Canara Bank became the first Indian Bank to receive ISO certification for total branch banking for its Seshadripuram branch in Bangalore.
  • Awards and recognitions: Canara Bank has won multiple accolades at the Emerging Asia Banks Awards that were organised by the Indian Chamber of Commerce. In FY 2022-23, it received the “Best Performance on Growth award”. This bank also was awarded the “Banker's Bank of the Year Award 2022”.

Canara Bank is India’s third-largest nationalised bank, with more than a century's worth of experience. With its present focus on improving its IT infrastructure, this company is all set to compete with its peers in providing state-of-the-art facilities to its users. With these initiatives in place, the Canara Bank share price forecast is 500+ by 2025 as opposed to the Canara Bank share price today at 110+.

Company profile of Canara Bank

Pros

  • Good profit growth. Canara Bank has delivered a stable profit growth rate of 78.53% over the past three years.
  • Excellent Capital Adequacy Ratio (CAR). Canara Bank has an excellent CAR of 16.28, which means it can cover its losses and stay solvent even in difficult financial times.
  • Zero Balance Accounts. Canara Bank offers zero-balance savings accounts to all of its customers, unlike many of its competitors.
  • Inventive Schemes. One of the biggest strengths of Canara Bank is its ability to be inventive while devising new schemes. Through these schemes, they continually strive to improve the living standards of the country.

Cons

  • High cost-to-income ratio. Canara Bank has a very high cost-to-income ratio of 47.04%. This indicates that the company’s costs increase at a higher rate than its income, indicating a low-cost efficiency.
  • Lack of high-profile clientele base. While Canara Bank has a large customer base, it does not have a large number of high-income customers.
  • Inadequate marketing. Despite being a nationalised bank, Canara Bank’s market visibility is low due to its low focus on marketing strategies.

The finances

Having obtained brief information about Canara Bank, let’s take a look at some of the financial aspects of the company obtained in June 2024!

Metric

Value

Market cap

Rs. 1,08,000+ Cr.

Share price

Rs. 119+

Book value

Rs 85.83 (Per share)

Dividend yield

2.7%

ROCE

18.49%

ROE

20.22%

Face value

Rs. 2

Shareholding pattern of Canara Bank

Let’s take a look at the shareholding pattern of Canara Bank from the data taken as of June 2024.

Peer multiple comparison

Metric

Canara Bank

Axis Bank

ICICI Bank

Punjab National Bank

P/E ratio

7.99

15.21

19.95

18.3

P/B ratio

1.49

2.52

3.49

1.54

Dividend yield (% of share price)

1.87%

0.08%

0.69%

0.47%

Canara Bank FAQs

How to Buy Canara Bank Share?

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To purchase Canara Bank shares, you can open a Demat & Trading account through a broker or financial institution. Once your account is set up and funded, search for Canara Bank (ticker symbol: canbk) on the trading platform provided by your broker and purchase the shares.

What's Canara Bank share price today?

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The stock price of Canara Bank as of 11 Jul 2024 is ₹116.78

What is the Market Cap of Canara Bank?

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Market capitalisation represents the total market value of a company's outstanding shares. As of 11 Jul 2024, Canara Bank (ticker symbol: canbk) has a market capitalisation of approximately ₹5,88,77,59,73,286.60

What is the PE and PB ratio of Canara Bank?

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Canara Bank Ltd's price-to-book ratio as of 11 Jul 2024 is 0.69431823, reflecting the market's valuation compared to its asset value. As of 11 Jul 2024, the trailing twelve months P/E (price-to-earnings) ratio is 7.006344, indicating the market values the company at around ₹7.01 for every ₹1 of earnings

What is the 52 Week High and Low of Canara Bank Share?

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Canara Bank Ltd (canbk) hit its 52-week high at ₹128.90, and its 52-week low at { ₹53.79}.
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