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Canara Bank Share Price Hits 4 Years High Surges 80 Per Cent In 6 Months

Canara Bank Share Price : Shares of Canara Bank on Monday, January 2 gained 2 per cent intraday to Rs 340.30 on the BSE, its 52-week high as well as its highest since February 2018. The stock is getting support due to strong earnings estimates and stable outlook for the December quarter. The special thing is that the stock has seen a rally of about 11 percent in the last 5 trading sessions. In the last six months, the stock has given strong returns of 80 per cent to its investors. At 11 am, the stock is up 1.30 per cent at Rs 338.

Rally continues after September quarter results

Canara Bank had registered a net profit of Rs 2,525 crore during the quarter ending September 2022, with a growth of 89 per cent year-on-year. On the other hand, due to good growth in advances, its net interest income (net interest income) the bank got a lot of support.

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The bank’s Net Interest Income during Q2FY23 grew by 18.5 per cent YoY to Rs 7,434 crore as against Rs 6,273 crore in the same quarter last year. Whereas, Net Interest Margin (Nim) grew to 2.86 per cent from 2.78 per cent in the previous quarter and 2.77 per cent in the year-ago quarter. Banks expect margins to remain strong in an era of high interest rates.

In its result update, Emkay Global Financial Services said total slippages of Rs 3,950 crore or 2.4 per cent of the loans are higher than expected. However, the GNPA ratio declined by 61 bps to 6.4 per cent on the back of strong credit growth coupled with higher recoveries and write offs.

Whereas, Fitch Ratings (Fitch Ratings) expects Canara Bank’s loan growth for the fiscal ending March 2023 to be higher than its guidance of 10 per cent. This will be supported by the prevailing risk appetite and higher corporate credit demand. The focus on credit quality still remains, given the need to ensure proper capital utilization of the bank.

Disclaimer: The views and investment advice expressed here are the personal views and opinions of investment experts. Moneycontrol advises users to consult certified experts before making any investment decisions.

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