Canara Bank up 20% in 1 month; sets to hit new high after gap of 15 years

Canara Bank: The stock price of public sector bank hit a multi-year high of ₹150.35 in Monday's intra-day; its highest level since Jan 2011, while the record high stands at ₹164.19 hit on Nov 9, 2010.

Share price of Canara Bank today

 

Shares of Canara Bank hit a multi-year high of ₹150.35, gaining 3 per cent on the BSE in Monday’s intra-day trade. The stock price of the public sector bank was quoting at its highest level since January 2011, and was seen inching towards its all-time high level of ₹164.19, touched on November 9, 2010.

 

In the past one month, Canara Bank has outperformed the market by soaring 20 per cent, as compared to less than 1 per cent gain in the BSE Sensex. Thus far in the calendar year 2025, the stock has zoomed 50 per cent, as against 8 per cent rise in the benchmark index.  CATCH STOCK MARKET LIVE UPDATES TODAY 

What's driving Canara Bank stock price?

 

Canara Bank’s total business stood at ₹26.79 trillion crore as on September 30, 2025, with deposits of ₹15.28 trillion and gross advances of ₹11.51 trillion crore making it the fourth largest Public Sector Bank (PSB) in India.

 

Canara Bank had seven subsidiaries and three associates as on September 30, 2025. In October 2025, Canara Bank reduced its shareholding in two of its subsidiaries Canara HSBC Life Insurance Company Limited (Canara HSBC Life) and Canara Robeco Asset Management Company Limited (Canara Robeco AMC) through offer for sale (OFS). The bank reduced its shareholding in Canara HSBC Life from 51 per cent to 36.5 per cent and in Canara Robeco AMC from 51 per cent to 38 per cent for a combined consideration of ~₹2,150 crore. As a result, both companies have become associates of the bank.

 

While the scale of subsidiaries and associates is significantly smaller compared to the scale of the bank, CareEdge Ratings expects Canara Bank to provide need-based support to these entities. Going forward, CareEdge Ratings expects capital adequacy to remain comfortable in the medium term.

 

The ‘stable’ outlook reflects CareEdge Ratings’ expectation that the bank will continue to maintain its steady growth in advances and deposits in the medium term, while maintaining stable asset quality and comfortable capitalisation levels, the rating agency said in its rationale.

 

In the July to September 2025 quarter (Q2FY26), Canara Bank’s net profit grew by nearly 19 per cent year-on-year (YoY) to ₹4,774 crore. The asset quality of Canara Bank also improved with gross non performing asset (NPA) ratio coming down to 2.35 per cent, YoY decline was 138 basis points. Net NPA also came down at 0.54 per cent, YoY decline of 45 basis points.

 

At the start of the year, the management had given some 13 parameters or guidance for the financial year 2025-26 (FY26). Out of those 13, 11 parameters Canara Bank already achieved and 2 parameters, CASA (Current Account and Savings Account) and net interest margin (NIM), the management said the bank is working hard to see that it too should be achieved. Of course, NIM the management is finding it a little difficult; but CASA, there is a positive growth from June quarter to this.

 

Analysts at InCred Equities expect credit costs to moderate over the next few years, given net NPA level and PCR now in a comfortable range. The brokerage firm has built in credit costs of ~60/65bp for FY27F/28F, respectively, vs 80bp in FY26F.

 

Analysts believe Canara Bank is well-placed to offset some margin compression by moderating credit costs over the next few years. It will also benefit from the stake sale/listing of life insurance and asset management company (AMC) subsidiaries in Q3FY26F (~₹2,000 crore; 10bp of average assets).

 

According to a Business Standard report, public sector lender Canara Bank is betting on strong credit growth, driven by GST rate cuts and lending to rural infrastructure in the second half of the financial year, even as it continues to strengthen its asset quality in agriculture loans and maintain profitability momentum.