— · NSE/BSE: CANBK
Canara Bank
Market Cap —
Verdict: Buy
Quality Scores
Multi-Bagger
74/100
Compounder Quality
81/100
Management Credibility
85/100
Governance
75/100
Cash Flow Quality
72/100
AI Summary
Canara Bank has undergone a significant structural transformation following its merger with Syndicate Bank in 2020. The bank has successfully transitioned from a period of heavy losses and NPA stress (FY16-FY20) to a highly profitable institution with RoE now exceeding 16%. Asset quality has improved dramatically, with Gross NPA dropping from double digits to 1.84% and Net NPA reaching a decade-low of 0.43%. The bank's massive capital base and extensive branch network position it as a key beneficiary of India's credit cycle. Current valuation at ~1x Book Value provides a margin of safety…
Top Opportunities
- Consistent Gross NPA reduction to 1.84%
- Net NPA reached a low of 0.43%
- Provision Coverage Ratio (PCR) is high at 94.19%
Top Risks
- Low CASA Ratio of 29.52% compared to private peers
- Huge contingent liabilities of 6,04,935 Cr
- Low Net Interest Margin (NIM) at 2.50%
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