Canara Bank has seen its shares reach a new 52-week high, marking a remarkable year-on-year increase of approximately 34% since October 26. This notable outperformance has contrasted with the Sensex’s more modest gain of 5%. On Tuesday, Canara Bank’s shares experienced an impressive rise of over 2%, achieving a yearly peak of ₹390.55. This marked the fourth consecutive day of gains for the bank, a surge attributed to the robust Q3 results it recently reported.
Canara Bank’s Q3 results featured a significant upswing in net profit, increasing by 43% to ₹3,606 crore (where INR100 crore is approximately equivalent to USD12 million). Additionally, the bank reported a nearly 20% growth in net interest income and a reduction in gross non-performing assets to 4.76%.
At the commencement of Tuesday’s trading session, the stock opened at ₹383.25, surpassing the prior closing price of ₹382.55. It subsequently achieved a midday climb of 1.27%, reaching ₹387.40 on the BSE. The catalyst for this upward trajectory was the bank’s announcement of its earnings for the September quarter.
The impressive performance of Canara Bank has been bolstered by stable revenue growth and reduced provisioning. Furthermore, the repricing of the Marginal Cost of Funds Based Lending Rate (MCLR) is anticipated to support sustained margins. Prominent brokerages, including Motilal Oswal Financial Services and JM Financial, maintain their buy recommendations based on positive projections for Return on Assets (RoA) and Return on Equity (RoE).
Today’s Expected Trading Range and Trend
Canara Bank shares continue to display strength, reaching new highs. The ongoing trend remains bullish as investors respond positively to the bank’s strong Q3 results and the overall economic climate.
Market participants are encouraged to keep a close watch on these developments as they position themselves in response to the evolving dynamics within Canara Bank’s stock.