- Canara Bank reported a net income of 47.5 billion rupees, which is a 21% increase year-over-year and exceeded the estimate of 41.68 billion rupees.
- The bank’s operating profit increased by 12% year-over-year to 85.5 billion rupees, surpassing the estimated 78.46 billion rupees.
- Gross non-performing assets decreased to 2.69% from the previous quarter’s 2.94%, and lower than the estimated 2.85%.
- Total provisions rose by 28% quarter-on-quarter to 23.5 billion rupees, slightly below the estimate of 24.19 billion rupees.
- Provision for loan losses decreased by 35% quarter-on-quarter to 18.5 billion rupees.
- The bank’s interest income saw an 8% year-over-year increase to 310 billion rupees, slightly surpassing the estimate of 308.59 billion rupees.
- Interest expense rose by 13% year-over-year to 219.9 billion rupees, just above the estimated 215.65 billion rupees.
- Other income saw a significant increase of 33% year-over-year to 70.6 billion rupees.
- Market analysts have given 13 buy ratings, 4 hold ratings, and 2 sell ratings for Canara Bank.
Canara Bank on Smartkarma
On Smartkarma, independent analyst Gaudenz Schneider provides insightful coverage of Canara Bank, offering unique perspectives on relative value opportunities through statistical methodologies. In the research report “Relative Value Roundup: Opportunities and Performance Recap of Pair Trades in Asia-Pacific,” Schneider highlights three pair trade opportunities persisting across markets and sectors, demonstrating a bullish sentiment. The statistical analysis presented in the report gives investors actionable insights into potential gains and the performance of previously identified pairs.
In another report titled “Pair Trade Signal: LIC Housing Finance (LICHF IN) Long Vs. Canara Bank (CBK IN) Short,” Schneider signals a bearish stance on Canara Bank compared to LIC Housing Finance. The analysis showcases a significant deviation in the price ratio of the two securities, indicating a potential relative value opportunity for investors. Schneider’s detailed discussion on trade setup, target return, and risk management provides a comprehensive view for investors considering implementing the relative value opportunity.
A look at Canara Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Canara Bank, a prominent banking institution in India, appears to have a rosy long-term outlook based on the Smartkarma Smart Scores analysis. With top marks in Value, Dividend, Growth, and Resilience, the bank seems well-positioned to weather market fluctuations and deliver consistent returns to investors. Its robust performance across these key factors bodes well for its financial stability and growth potential in the coming years.
While Canara Bank falls slightly short in Momentum, scoring a commendable 4 out of 5, its overall outlook remains positive. As a provider of comprehensive banking services across the country, including retail, commercial, and investment banking, the company’s strong fundamentals and favorable Smart Scores suggest a promising future ahead, making it an attractive prospect for investors seeking a reliable and thriving player in the banking sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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