Canara Bank
NSE: CANBKCanara Bank: A 30-second snapshot
Canara Bank (CANBK) trades at Rs 128.23, carrying a trailing PE of 5.35 — the lowest among its 6-peer banking group — with a reported ROE of 17.57% and a dividend yield of 3.28%. The stock is 21.28% below its 52-week high, below both the 50-DMA (Rs 134.82) and 200-DMA (Rs 135.46), and declined 15.6% over the past three months following Q4 FY26 results that showed a 10% YoY fall in net profit driven by rising slippages and lower other income.
P/E
5.4
Forward P/E
5.6
ROE
+17.6%
Debt / Equity
—
Profit Margin
+32.0%
Div. Yield
+3.3%
5Y ROE > 15%
3/5
5Y FCF > 0
3/5
Quality
56/100
News
8 headlines · 2 positive · 5 negative
Canara Bank Q4 Results: Stock falls after slippages rise; Lower other income impacts profit - CNBC TV18
CNBC TV18
Canara Bank Q4 Results: Profit Falls 10% Despite Lower Provisions; Asset Quality Improves - NDTV Profit
NDTV Profit
Canara Bank posts a 10% decline in Q4 net profit - The Hindu
The Hindu
Canara Bank ₹7.31 crore gold loan fraud: Fake jewellery found, 2 arrested - CNBC TV18 - LinkedIn
Rs 7.3 crore gold loan fraud unearthed at Canara Bank's Badnapur branch in Jalna; two arrested - The Times of India
The Times of India
Recent context
- ·Q4 FY26 results (May 11, 2026): net profit approximately Rs 4,506 crore, down 10% YoY; rise in slippages and a drop in other income were the primary drivers, partially offset by lower provisions (CNBC TV18, NDTV Profit).
- ·A Rs 7.31 crore gold-loan fraud was uncovered at the Badnapur branch in Jalna (reported April 25-26, 2026); two individuals were arrested and fake jewellery was recovered (The Times of India, CNBC TV18).
- ·Analyst coverage stands at 20 analysts with a mean rating of 1.74 on a 1-5 scale (lower = more constructive).
Strengths
- +PE of 5.35 is the lowest in the 6-member peer group, where the next cheapest peer (Axis Bank) trades at 15.2x — a differential of nearly 3x.
- +ROE of 17.57% ranks 2nd of 6 peers, above HDFC Bank (13.82%), Axis Bank (13.15%), and HDFC Life (11.28%).
- +5-year revenue growth of 20.9% demonstrates top-line expansion at a pace well above what the current single-digit PE implies.
- +Dividend yield of 3.28% provides an income component at current prices against a low single-digit trailing PE.
Weaknesses
- −5-year earnings growth of -9.8% despite double-digit revenue growth signals that cost escalation and provisioning cycles are eroding profitability at the bottom line.
- −Q4 FY26 PAT fell 10% YoY as slippages rose and other income declined — a near-term data point consistent with the longer-term earnings growth deficit.
- −Fundamental consistency score of 45/100 and ROE above 15% in only 3 of tracked years indicates the current profitability level is not yet a demonstrated multi-year pattern.
- −A Rs 7.31 crore gold-loan fraud reported at the Jalna branch adds a governance and process-control risk vector alongside ongoing asset-quality pressure.
Open questions
- ?Does the 10% YoY decline in Q4 PAT reflect a one-quarter provisioning cycle, or does the multi-year earnings growth deficit of -9.8% suggest a structural ceiling on profitability for PSU banks of this size?
- ?How does CANBK gross NPA trajectory and slippage ratio compare to PSU-bank peers such as PNB or Bank of Baroda — and does the valuation gap vs private-sector peers adequately price the asset-quality differential?
- ?Given that the 52-week gain of 24% is concentrated in an earlier period that has since reversed 21% from the peak, what catalyst or financial milestone would change the near-term operating direction?
- ?Is the rising debt trend a function of normal loan-book expansion in a PSU bank, or does it indicate balance-sheet leverage building in a period of margin compression — and how does the capital adequacy ratio trend answer that question?
Peer comparison: Banking
Ranks 3 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| CANBK | Canara BankYou're viewing | 5.4 | +17.6% | 49 |
| Industry avg | across 5 peers | 32.2 | +14.2% | 39 |
| BAJFINANCE | Bajaj Finance Ltd. | 30.1 | +17.9% | 53 |
| AXISBANK | Axis Bank Ltd. | 15.2 | +13.2% | 50 |
| HDFCBANK | HDFC Bank Ltd. | 17.1 | +13.8% | 47 |
| BAJAJFINSV | Bajaj Finserv Ltd. | 29.0 | +14.6% | 23 |
| HDFCLIFE | HDFC Life Insurance Company Ltd. | 69.7 | +11.3% | 20 |
Technical state
Current price
₹128.23
SMA 50
₹134.82
SMA 200
₹135.46
RSI (14)
40.2 (neutral)
From 52w high
-21.3%
1Y return
+24.1%
3M return
-15.6%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- medium5-year earnings growth of -9.8% against 5-year revenue growth of 20.9% indicates margins and/or provisioning have absorbed the revenue expansion; Q4 FY26 PAT fell 10% YoY on rising slippages and lower other income, extending the earnings-quality concern.
- mediumROE exceeded 15% in only 3 of the tracked years, with a fundamental consistency score of 45/100; debt trend is classified as rising, which for a PSU bank raises provisioning and capital-adequacy sensitivity.
- medium5 of 8 recent headlines carry negative sentiment: Q4 PAT -10% YoY, asset-quality stress from rising slippages, and a reported Rs 7.31 crore gold-loan fraud at a branch in Jalna — two distinct risk vectors surfacing simultaneously.
- lowPrice at Rs 128.23 is below both the 50-DMA (Rs 134.82) and 200-DMA (Rs 135.46); down 15.6% over the past 3 months and 21.28% from the 52-week high; RSI at 40.23 is in the lower half of the neutral band.
- low1-year price change data is unavailable for all 5 sector peers, preventing a like-for-like relative price-performance comparison within the banking group.
Cross-section contradictions
- CANBK ranks 1st of 6 peers on PE at 5.35 (peer range 15.2-69.7) and 2nd on ROE at 17.57% — yet Q4 earnings declined 10% YoY and news flow is predominantly negative on asset quality, creating a divergence between peer-relative valuation standing and near-term operating momentum.
- The 1-year price change of +24.09% coexists with a 3-month decline of 15.6% and a position below both moving averages, indicating the annual gain is concentrated in an earlier period that has since reversed materially.
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.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 22 May 2026 · rotates through NIFTY 500 every ~5 days