Canara Bank
Banking · NSE
52-week range
₹88 – ₹163
From 52w high
-17.5%
RSI (14)
43.4
vs SMA 50 / 200
↓ 50 · ↓ 200
Canara Bank (CANBK) trades at ₹134.34, a PE of 6.02 and ROE of 18.22% — the highest on both metrics among its 6-peer banking comparator set as of May 2026. The stock is up 50.63% over 12 months but has pulled back 8.92% over the past 3 months and sits marginally below its 200-DMA (₹134.60). A 5-year revenue decline of 42.6% coexists with 5-year earnings growth of 24.5%, creating an unusual divergence that warrants closer examination of provisioning cycles and write-back dynamics.
- ✓PE of 6.02 is the lowest among the 6-peer banking comparator group, which includes HDFC Bank (17.4), Axis Bank (15.0), Bajaj Finance (31.3), and Bajaj Finserv (30.3).
- ✓ROE of 18.22% leads all 6 listed peers, exceeding Bajaj Finance (17.91%), Axis Bank (13.15%), HDFC Bank (13.82%), and HDFC Life (11.28%).
- ✓Quality score of 56/100 ranks first among peers, whose scores range from 20 (HDFCLIFE) to 51 (BAJFINANCE).
- ✓Dividend yield of 2.98% and a profit margin of 34.35% indicate that reported earnings are translating into meaningful shareholder distributions at this stage.
- ✗ROE above 15% in only 2 of the tracked years and a consistency score of 58/100 indicate the current 18.22% ROE does not yet reflect a multi-year established pattern.
- ✗5-year revenue growth of -42.6% represents a structural contraction in top-line income over the period, even as earnings grew 24.5% over the same horizon — the gap raises questions about sustainability of the current earnings level.
- ✗A ₹7.31 crore gold loan fraud involving fake jewellery, resulting in two arrests, surfaced in April 2026, representing a branch-level governance and operational-risk event.
- ✗RBI finalisation of ECL provisioning norms triggered sector-wide share price pressure in late April 2026; higher mandated provisions would reduce near-term reported profitability for PSU lenders, including CANBK.
- ·Q4 FY26 results were previewed (Zee Business, May 8) with PAT expected to rise approximately 9% and asset quality described as improving — the actual numbers had not yet been published at the time of this analysis.
- ·The RBI ECL norm finalisation in late April 2026 caused CANBK shares to decline alongside other PSU bank names, as the market re-priced the provisioning burden ahead of implementation.
- ·A gold loan fraud of ₹7.31 crore at a Maharashtra branch, involving fake jewellery pledged as collateral, led to two arrests in late April 2026; the event has been reported across multiple outlets including CNBC TV18 and Hindustan Times.
- ?Does the 5-year earnings growth of 24.5% alongside a revenue decline of 42.6% reflect a one-time reversal of legacy NPAs, or a durable improvement in credit quality and cost structure?
- ?How does CANBK's ECL provisioning buffer compare to peers, and what is the estimated impact on reported PAT if ECL norms are implemented as finalised?
- ?What proportion of CANBK's loan book is secured by gold, and how does the branch-level fraud incident reflect on the systemic adequacy of collateral verification controls?
- ?Has the ROE of 18.22% been achieved alongside a rising debt trend, and if so, what does the quality of that leverage imply for return sustainability in a higher-provisioning environment?
PE
6.0
Forward PE
6.3
ROE
+18.2%
Profit margin
+34.4%
D/E
—
Dividend yield
+3.0%
Quality score
56/100
ROE 5y above 15%
2/5 yrs
FCF 5y positive
3/5 yrs
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.Analysis generated 10 May 2026.