CANBK
Large CapCanara Bank
Financial Services
Canara Bank is an Indian public sector bank offering a wide range of banking and financial services. It reported global business of INR 28.06 lakh crore and global advances of INR 12.37 lakh crore for FY26, with a focus on RAM credit and improving asset quality.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100PAT -10% YoY · Rev +1% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹31,839 Cr | +1.1% | +2.9% |
| EBITDA | NDF | NDF | NDF |
| Operating margin | NDF | NDF | NDF |
| PAT | ₹4,575 Cr | -10.5% | -11.6% |
| PAT margin | 14.4% | -186 bps | -235 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Canara Bank reported strong annual profit growth and improved asset quality for FY26, with Net Profit up 12.69% YoY and GNPA declining to 1.84%. However, Q4 performance saw a significant drop in non-interest income and net profit QoQ and YoY.
While annual results show robust growth in advances and improved asset quality, the sharp decline in Q4 non-interest income, operating profit, and net profit, coupled with an increase in fresh slippages QoQ, raises concerns about earnings stability and underlying business momentum. The bank's ability to sustain asset quality improvement amidst rising slippages and manage non-core income volatility will be key.
Advances Mix (Mar'26)
Latest issuer-disclosed distribution across 4 reported categories.
Retail Credit Growth
Retail credit grew 32.93% YoY to INR 2,96,912 crore.
RAM Credit Focus
RAM credit grew 19.73% YoY to INR 7,30,520 crore, comprising 59% of advances.
NBFC Credit
NBFC credit grew 14.02% YoY to INR 1,57,478 crore.
Construction Sector Credit
Construction credit grew 32.88% YoY to INR 11,360 crore.
Strong Capital Position
CRAR at 17.04% and Common Equity at 12.44% provide capital for growth.
Improved Asset Quality
Significant YoY decline in GNPA to 1.84% and NNPA to 0.43%, with PCR at 94.21%.
Priority Sector Compliance
Exceeded all mandated norms for priority sector lending, including total priority (43.71% vs 40% norm) and agriculture (19.52% vs 18% norm).
Q4 Non-Interest Income Decline
Non-interest income fell 38.94% QoQ and 24.04% YoY in Q4, driven by sharp drops in treasury income and profit on sale of investments.
Q4 Profitability Pressure
Q4 Operating Profit declined 25.89% QoQ and 18.42% YoY, and Net Profit fell 12.59% QoQ and 9.95% YoY.
Rising Slippages
Fresh slippages increased to INR 2,771 crore in Q4 from INR 1,857 crore in Q3.
Declining Yields
Yield on Advances declined to 8.29% in Q4 from 8.34% in Q3 and 8.83% in Q4 FY25.
Asset Quality Volatility
Despite overall improvement, Q4 saw an increase in fresh slippages and high GNPA in MSME (4.64%) and Food Processing (6.93%).
Non-Core Income Dependence
Significant drop in treasury income and profit on sale of investments highlights sensitivity to market conditions.
Infrastructure Credit Decline
Infrastructure credit declined 7.86% YoY and 6.46% QoQ to INR 1,28,239 crore.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
For financial services, YoY comparison is crucial for assessing overall annual growth and structural changes in asset quality and profitability. QoQ comparison is vital for tracking sequential momentum in business growth, NIM trends, and immediate asset quality developments like slippages and provisions, which can be volatile.
AUM growth
Global Advances grew 15.30% YoY to INR 12,37,548 crore.
NIM
Q4 NIM was 2.54%, up from 2.45% QoQ but down from 2.73% YoY.
Borrowing cost
Cost of Funds declined to 5.09% in Q4 from 5.18% in Q3 and 5.28% in Q4 FY25.
GNPA
Gross NPA declined to 1.84% in Q4 FY26 from 2.94% in Q4 FY25.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Net Interest Margin (NIM) | 2.54% (Q4 FY26) | Stability or improvement in NIM, given declining yields on advances and funds. |
| Fresh Slippages | INR 2,771 crore (Q4 FY26) | Trend in fresh slippages to assess underlying asset quality and future credit costs. |
| Non-Interest Income | INR 4,824 crore (Q4 FY26) | Recovery and stability in non-interest income, especially treasury and investment-related gains. |
| RAM Credit Growth | 19.73% YoY | Continued strong growth in RAM segments, particularly Retail and MSME, to drive overall advances. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -6.4% / mo
Technical chart
CANBKweekly · 1Y+23.4%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 55. Wait for confirmation.
- SMA20 falling (~6.9% over last month) — short-term momentum negative.
- RSI(14) at 55 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 16% off 52W high · 33% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.4%.
- Fair-value margin of safety is positive at 78.8%.
- Valuation contributes 30/30 to the score.
Main drags
- Altman Z is 1.7, in distress territory.
- Quality is weaker at 7/20; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Bank valuation: P/B adjusted for ROE and asset quality
Banks are balance-sheet businesses, so book value quality matters more than simple earnings multiples.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 64th percentile of the scored universe and 81st percentile within Financial Services. Main check: financial discipline is weak at 56/100.
Healthy Trust Lite: Promoter holding is 62.9%. Key concern: Altman Z is 1.69.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Financial Services: 81st pctile, median 62 · Large: 39th pctile, median 74
123 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 62.9%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.4%.
- ▸8 years of positive FCF.
Trust risks
- ▸Altman Z is 1.69.
- ▸ROCE is low at 6.5%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 6.67
- P/B
- 1.02
- EV/EBITDA
- 297.23
- Market Cap
- 119651.00Cr
Profitability
- ROE
- 16.10%
- ROCE
- 6.52%
- ROA
- 1.04%
- Dividend Y
- 3.18%
Growth (CAGR)
- Revenue 5Y
- 12.00%
- EPS 5Y
- 44.00%
- Revenue 3Y
- 14.00%
- EPS 3Y
- 18.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- —
- Altman Z
- 1.69
- Book Value
- 130.00
Cash Flow
- FCF Yield
- 4.38%
- FCF Positive Y
- 8/5
- OCF
- 7942.00 Cr
- EPS TTM
- 19.70
Shareholding
- Promoter Hold
- 62.93%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 47%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Financial Services — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.