Canara Bank Share Price Target: 2024, 2025 to 2030: Can CANBK reach 1000INR?

Canara Bank is a public sector bank based in India. It is one of the oldest and largest banking institutions in the country. The bank was founded in 1906 and has since grown to become one of the leading banks in the country. The bank is also one of the biggest employers in India, with over 86,919 employees.

The bank provides a range of banking services such as corporate banking, retail banking, wealth management, and more. The bank also has a network of over 11499 branches and more than 10,463 ATMs across the country.

This PSU bank has been posting better results each quarter, but the growth has not been reflected in its share price increase in the same proportion.

Keeping all these points in mind, is investing in Canara Bank’s share price in 2024 a good idea? Let’s find out.

Canara Bank’s Recent Earning Report Explained

Canara Bank Q3 FY2024 Results: Key Points

• Canara Bank’s Q3 FY24 net profit surged by 26.87% to Rs 3656 crore, surpassing estimates.
• Gross non-performing assets (NPA) decreased to 4.39% from 5.89% in the same quarter last year, indicating healthy asset quality.
• Net Interest Income grew by 9.50% to Rs 9,417 crore.
• Global business expanded by 9.87% to Rs 22,13,360 crore, driven by growth in deposits and advances.
• Retail lending portfolio increased notably, with housing loans and advances to agriculture showing significant growth.
• Canara Bank maintains a wide network of branches and ATMs, including overseas branches in London, New York, and Dubai.
• Despite a minor dip in share value, the bank’s performance demonstrates resilience and strategic focus amidst a dynamic economic environment.

Canara Bank Q2 FY2024 Results: Key Points

1. Net Profit Surge: Canara Bank reported a significant increase in its net profit, reaching Rs 3,606 crore in Q2 FY24. This marks a 43% rise compared to the same period in the previous fiscal year.

2. Net Interest Income Growth: The bank’s net interest income (NII) for the quarter was Rs 8,903 crore, showing a healthy increase of 19% year-on-year.

3. Improvement in Asset Quality:

Gross NPA: The Gross Non-Performing Asset (NPA) ratio decreased to 4.76%, down from 6.37% in the year-ago period.

Net NPA: Net NPA also improved, coming down to 1.41% from 2.19% compared to the same quarter last year.

4. Deposit and Advances Growth:

Deposits: The bank’s total deposits stood at Rs 11.43 lakh crore, growing by 8.22%.

Advances: Domestic advances reached Rs 8.78 lakh crore, marking a growth of 12.59%.

5. Credit Portfolio Expansion:

The RAM (Retail, Agriculture, and MSME) credit grew by 13.63% to Rs 5.16 lakh crore, accounting for 56% of total advances.

Retail credit saw a 10.56% increase.

6. Sector-specific Loan Growth:

Housing Loans: The housing loan portfolio grew by 12.32% to Rs 88,564 crore.

Education Loans: There was a 14.68% increase in education loans.

Vehicle Loans: Vehicle loan growth was reported at 9.29%.

Agricultural Advances: Advances to agriculture grew by 20.54% to Rs 2.36 lakh crore.

Retail Portfolio Development: The bank’s retail portfolio expanded to Rs 1.48 lakh crore, a growth of 10.56%.

Canara Bank Q1 2024 Results Summary

1. Net Profit & NII Growth: Canara Bank reported a 74.8% increase in net profit to Rs 3,534.8 crore compared to Rs 2,022 crore in Q1 FY23. Net Interest Income (NII) surged by 28% to Rs 8,666 crore from Rs 6,784.7 crore in Q1 FY23.
2. NPA Metrics: The bank’s gross NPA was Rs 45,727.4 crore, marginally down from Rs 46,159.5 crore in Q4 FY23. Net NPA decreased to Rs 13,461.4 crore from Rs 14,349.3 crore in Q4 FY24, with gross NPA and net NPA percentages increasing to 5.15% and 1.57% respectively.
3. Deposits & Advances: Global deposits grew by 6.65% on-year to Rs 11.92 lakh crore and domestic deposits by 4.9% on-year to Rs 11.05 lakh crore. Global gross advances rose by 13.27% on-year to Rs 8.88 lakh crore, and domestic gross advances increased by 12.69% on-year to Rs 8.18 lakh crore.
4. Treasury Income: Canara Bank experienced a significant 71.01% on-year drop in its treasury income, with profit on exchange transactions and profit on the sale of investment declining by 75.21% and 66.93% on-year respectively.

Stock History of Canara Bank

Canara Bank’s stock has been trading on the National Stock Exchange of India since 2000. Since then, the stock has seen highs and lows, with its price reaching a peak of Rs. 765 in 2010, and a low of Rs. 79 in 2020. In recent years, the stock has seen an upward trend and has been trading above Rs. 80 since May 2020.

As of March 3rd, 2024, Canara Bank is trading at Rs. 587 with a market cap of ₹1,06,444 Crore.

How to buy Canara Bank Shares?

Recommended by Financesrule

Things to Know About Canara Bank Before Buying or Selling its Share

• Canara Bank has shown consistent growth in sales over the past 10 years, with a compounded annual growth rate (CAGR) of 10%.
• The bank’s sales growth has accelerated in recent years, with a CAGR of 16% over the past 5 years and 20% over the past 3 years.
• In the trailing twelve-month (TTM) period, Canara Bank achieved a significant sales growth rate of 32%.
• Canara Bank has also demonstrated steady growth in profits over the years. Its compounded profit growth has been 14% over the past 10 years, 37% over the past 5 years, and an impressive 98% over the past 3 years.
• The bank’s trailing twelve-month (TTM) profit growth stands at 48%.
• While Canara Bank has experienced slow growth in stock price over the past 10 years (6% CAGR), it has shown slight higher growth in the last 5 years (9% CAGR), but much higher growth in 3 years (62% CAGR), and 1 year (25% CAGR).
• Canara Bank has consistently improved its return on equity (ROE) over the years. It achieved an ROE of 4% over the past 10 years, 7% over the past 5 years, 10% over the past 3 years, and a notable 15% in the last year.
• Canara Bank has contingent liabilities amounting to Rs. 3,15,633 Crore.
• There is a possibility that the company is capitalizing on the interest cost.
• The earnings of the company include a significant other income of Rs. 25,325 Crore.
• The promoter holding has decreased by 15.6% over the last 3 years. Current promoter holding: 62.93%

Canara Bank Share Price Prediction 2024, 2025 TO 2030

Canara Bank’s Share Price Target for 2024

Throughout 2024, Canara Bank anticipates a dynamic market scenario, with its monthly maximum and minimum prices poised to undergo fluctuations. At the outset, in March, projections suggest a maximum price of ₹600.60, coupled with a minimum of ₹522.26. As the year unfolds, these figures are expected to oscillate, with December marking the pinnacle, showcasing a maximum price of ₹659.64 and a corresponding minimum of ₹573.60. This anticipated trajectory reflects the bank’s adaptability to the evolving market conditions, guiding stakeholders through the intricacies of price variations.

Canara Bank Price Target for 2025

In 2025, Canara Bank foresees a dynamic pricing landscape, with monthly maximum and minimum prices fluctuating. Starting in January, the maximum price is anticipated to be ₹672.83, with a minimum of ₹517.56. As the year progresses, both figures are expected to rise steadily, culminating in December with a projected maximum of ₹804.19 and a corresponding minimum of ₹618.61. Canara Bank remains vigilant amidst these fluctuations, ensuring stakeholders navigate the market with informed decisions.

Canara Bank Share Price Prediction 2026

Canara Bank Price Target for 2027

Canara Bank Price Target for 2028

Canara Bank Share Price Prediction 2029

Canara Bank Share Price Prediction 2030

Throughout 2030, Canara Bank foresees a consistent upward trajectory in monthly maximum and minimum prices. Starting in January with a projected maximum of ₹1,829.82 and a minimum of ₹1,407.56, prices are expected to rise steadily. By December, the trend peaks with a maximum price of ₹2,187.07 and a corresponding minimum of ₹1,682.36. Canara Bank remains attentive to market dynamics, guiding stakeholders through these fluctuations.

Canara Bank Financial Condition: Last 5 years

Canara Bank’s financials from March 2019 to March 2023 illustrate a dynamic trajectory marked by significant shifts in key indicators. During this period, the bank experienced steady growth in revenue, with an increase from ₹47,951 crore in March 2019 to ₹85,885 crore in March 2023, indicating a robust top-line performance. However, parallel to revenue growth, interest expenses also surged notably, from ₹32,339 crore to ₹52,990 crore, reflecting escalating costs associated with borrowing. Despite facing fluctuating expenses, Canara Bank managed to bolster its profit before tax and net profit substantially, showcasing commendable operational efficiency and adept cost management strategies. Moreover, the bank’s earnings per share displayed an upward trajectory, demonstrating improved profitability and shareholder value. Throughout this period, Canara Bank maintained a steadfast commitment to shareholder rewards, as evident by the gradual increase in dividend payout percentage from 0% to 19%, aligning with the bank’s enhanced profitability. These financials underscore Canara Bank’s resilience and adeptness in navigating market dynamics while driving sustainable growth and shareholder value.

FAQs

Will Canara Bank’s share price grow in 2024?

The growth of any company depends on a number of factors such as the bank’s performance, government policies, the macroeconomic environment, market sentiments, and many more. Considering these factors, Canara Bank is expected to see a growth in the coming years and hence we could expect a growth in the share price of Canara Bank in 2024.

What future is anticipated for Canara Bank Share in 2025?

It is difficult to predict the exact price of Canara Bank shares in 2025. However, based on current market trends and the bank’s performance, it is likely that the stock will continue to grow in the coming years. The bank has been performing well and is likely to continue to do so in the future. Therefore, it is expected that the stock price of Canara Bank will increase in the next few years.

Almost the whole decade is looking optimistic for this PSU bank as the bank is currently performing well and likely to maintain the same. Moreover, the government is looking supportive of the uprise of left PSU banks. Therefore, we can see a rise in the price of Canara Bank’s shares by 2025 and according to our prediction and calculation, it will reach ₹804.19 by the end of 2025.

What is the Canara Bank share price target for 2030?

Canara Bank could reach ₹2,187.07 by the end of 2030. The minimum possible target is ₹1,407.56.

What is the Market capitalization of Canara Bank?

As of 3rd March 2024, the Current Market capitalization of Canara Bank is ₹ 1,06,444 Cr.

Conclusion

At the time of updating this article, my family members held Canara Bank in our portfolio.

Disclaimer: Canara Bank’s share price target for 2024 to 2030 is an opinion and not financial advice. You are advised to do your own research and/or consult a financial advisor before investing in Canara bank shares. We are not a SEBI-registered financial advisor.

Last updated: 3rd March 2024

Author: Aryan Hello, I am Aryan. I am passionate about writing about topics ranging from cryptocurrency and blockchain to modern developing technologies such as ML, AI, IoT, etc. Also, the collaboration of Finance and Technology attracts me.

Linkedin