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 86,000 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 6,310 branches and more than 8850 ATMs across the country.
This PSU bank has been posting better results each quarter, but the growth has not reflected in its share price increase in the same proportion.
Keeping all these points in mind, is investing in Canara bank share price in 2023 a good idea? Let’s find out.
Canara Bank Recent Earning Report Explained
Canara Bank Q1 2024 Results Summary:
- 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.
- 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.
- 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.
- Treasury Income: Canara Bank experienced a significant 71.01% on-year drop in its treasury income, with profit on exchange transactions and profit on 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 September 25th, 2023, Canara bank is trading at Rs.381 with a marketcap of ₹ 69,508 Crore.
Canara Bank in Recent news
- Canara Bank introduces the “UPI Interoperable Digital Rupee” mobile application (August 24, 2023)
- According to CEO K Satyanarayana Raju, Canara Bank intends to establish a separate company to manage its credit card operations. After the State Bank of India and Bank of Baroda, the bank, which is the third most valuable state-run institution, would either utilize one of its current subsidiaries or create a new one to manage the card business, which it feels may develop exponentially, he added.
- Canara Bank was fined Rs 2.92 crore by the RBI for breaking many rules, including those relating to tying interest rates to external benchmarks and creating savings accounts for illegitimate businesses, according to the RBI.
- For consumers, Canara Bank has reduced the interest rate on house loans and auto loans. In accordance with the revised rate, the bank will provide house loans and auto loans with interest rates starting at 8.55% and 8.80%, respectively.
- The Board has proposed to the shareholders a dividend for the fiscal year 2022–2023 of Rs 12 per equity share (i.e., 120%) of face value of Rs 10 per 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 months (TTM) period, Canara Bank achieved a significant sales growth rate of 29%.
- 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 months (TTM) profit growth stands at 63%.
- While Canara Bank has experienced a slight growth in stock price over the past 10 years (6% CAGR), it has shown slower growth in the last 5 years (3% CAGR), but much higher growth in 3 years (43% CAGR), and 1 year (59% 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 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.
Canara Bank is currently trading at ₹383 with a market cap of ₹ 69,472 Crore. Having a ROCE of 5.33%, it has a good potential to grow in the coming years.
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Canara bank share price YTD is down 3.17%.
Canara bank share price prediction suggests CANBK in 2023 could be bearish for the first three months, and then go up in the next 9 months.
Considering all the factors that could possibly affect the share price of Canara Bank, we predicted and calculated that the share price could reach ₹455.60 by the end of 2023.
The minimum price Canara bank share price could drop to in 2023 is ₹271.58 in the month of February, 2023.
Canara bank share price target for September 2023 is in the range of ₹392.73 and ₹299.02 while Canara bank share price target for October 2023 is in between ₹425.45 and ₹315.73
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As Canara Bank is performing well and is expected to maintain the same in the coming year, we could predict the price optimistically and by doing the same we can see Canara Bank share price reach ₹595.86 by the end of 2024. The minimum price Canara bank share price could drop in 2024 is ₹308.78.
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2025 looks bullish for Canara Bank. If everything goes fine with the bank in the coming years, by 2025, the share price could reach ₹722.78 for Canara Bank.
The maximum Canara bank share price target for 2025 is ₹722.78 while the minimum possible target is ₹419.42.
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After reaching Rs. 722 in the last month of 2025, the market will fall for continuously for 2 years will fall as low as Rs. 301.04 in 2027. However, the share prices will close at Rs. 430.06 in 2027.
In 2028, the bull run will take the prices to almost double and the prices will jump up to Rs. 774.10 by the end of 2028. Again, next year will be bullish and will take the prices to Rs. 1,590 in 2029. The price will cross the mark of Rs. 1,700 in 2030 and is expected to close the year at Rs. 1,770.82.
Canara Bank Financial Condition: Last 5 years
|Canara Bank||Mar 2019||Mar 2020||Mar 2021||Mar 2022||Mar 2023|
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|EPS in Rs||7.99||-19.28||17.55||33.76||62.04|
Canara Bank Receives Buy Recommendation from Motilal Oswal with a Target Price of Rs. 400 per Share
Brokerage Firm Emkay Global Issues a Buy rating for Canara Bank with a price prediction of Rs. 385 per Share
Canara Bank gets a buy call from JM Financial with an expected price of Rs 371.
Canara Bank Price target by LKP Research
LKP Research recommends purchasing Canara Bank with a target price of Rs 410. (July 29, 2023)
Canara Bank Price target by Rajesh Palviya
Rajesh Palviya suggests buying Canara Bank with a goal of Rs 385. (July 20, 2023)
As 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 share price of Canara bank in 2023.
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 ₹722 by the end of 2025.
It‘s tough to tell exactly what the price of Bank of Baroda stocks will be in the future. But based on current market trends, it‘s feasible that the stock price could hit Rs. 2,000 in the future. The stock has been doing well recently and is likely to keep doing so in the future. Thus, it‘s possible that the Bank of Baroda‘s stock price could reach Rs. 2,000 in the future after 2030, possibly by 2040 or 2050.
Canara bank could reach ₹1,770.82 by the end of 2030. Minimum possible target is ₹1,239.57. If we compare it with today’s price, we can see it could go up by more than 6times.
Conclusion: Can CANBK reach 1000INR?
In conclusion, Canara Bank is one of the oldest and largest banks in India and has a network of over 6,310 branches and 8850 ATMs across the country. The bank’s stock has seen highs and lows in recent years and is currently trading above Rs. 300.
From our prediction of Canara bank share price upto 2030, we can see CANBK could reach Rs.1000 per share by 2029. If all things go well, Canara bank’s stock price could also reach Rs. 2,000 in the future (by 2040).
According to me, Canara bank share is a good buy option when the share price is below 383INR. One can start accumulating Canara bank shares in small amount for long term.
Canara Bank is currently trading at a PE ratio of 5.42 while its Median PE for the last 5 years is 7.0. During July 2019, the highest PE ratio has been above 25. In that context, Canara bank shares is now undervalued. It could be a good time to add some Canara Bank to one’s portfolio.
At the time of updating this article, I and my family members hold Canara Bank in our portfolio.
Disclaimer: Canara bank share price target 2023 to 2030 is an opinion and not a 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: 24th September, 2023
What did we learn?
- 1 Canara Bank Recent Earning Report Explained
- 2 Stock History of Canara Bank
- 3 Canara Bank in Recent news
- 4 How to buy Canara Bank Share?
- 5 Things to Know About Canara bank before Buying or Selling its Share
- 6 Canara Bank Share Price Prediction 2023-2030
- 7 Canara Bank Financial Condition: Last 5 years
- 8 Canara Bank Share Price Target by Experts
- 9 FAQs
- 10 Conclusion: Can CANBK reach 1000INR?