• Canara Bank reported a net income of 37.6 billion rupees in 4Q, marking a year-on-year increase of 19% and meeting the estimated 37.45 billion rupees.
• Operational profit for the quarter stood at 73.9 billion rupees, an increase of 1.9% from the previous year.
• Gross non-performing assets slightly decreased to 4.23% as compared to 4.39% in the previous quarter, hovering around an estimated 4.22%.
• Interest income for the quarter was reported as 288.1 billion rupees, a significant increase of 20% year-on-year and surpassing the estimated 253 billion rupees.
• Interest expense was higher than expected at 192.3 billion rupees, up by 26% compared to the previous year, and going beyond the estimate of 166.15 billion rupees.
• Non-interest income stood at 52.20 billion rupees, significantly higher than the estimated 44.25 billion rupees.
• Other income also saw an increase of 9.2% year-on-year, reaching 52.2 billion rupees and surpassing the estimated 44.25 billion rupees.
• Canara Bank announced a dividend per share of 16.10 rupees.
• Following the disclosure, Canara Bank shares rose by 3% to 594.05 rupees. The trading volume was 6.43 million shares.
• Investment recommendations following the release were 11 buys, 2 holds, and 3 sells.
Canara Bank on Smartkarma
Analysts on Smartkarma are bullish on Canara Bank, with Daniel Tabbush emphasizing the bank’s remarkable progress in reducing non-performing loans and significantly increasing net profit. Tabbush highlights the potential for continued profit expansion through lower credit costs and improved Return on Equity (ROE), which has surged from 11.7% to 17.3% over recent years. This positive sentiment is supported by Brian Freitas, who suggests that Canara Bank could soon replace Bandhan Bank in the NIFTY Bank Index due to its favorable valuation and potential for passive index trackers to shift towards Canara Bank.
With insights from top analysts like Tabbush and Freitas, investors can gain valuable perspectives on Canara Bank‘s growth potential and market positioning. Tabbush’s outlook on lower non-performing loans and rising profits, coupled with Freitas’s analysis of Canara Bank‘s possible inclusion in the NIFTY Bank Index, underscores the favorable sentiment surrounding the bank. As investors navigate the financial landscape, Smartkarma serves as a platform for accessing in-depth research and expert opinions to make informed investment decisions regarding companies like Canara Bank.
A look at Canara Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 5 | |
| Resilience | 5 | |
| Momentum | 5 | |
| 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 Ltd., a prominent banking institution in India, is poised for a positive long-term outlook based on its impressive Smartkarma Smart Scores. With top marks in Dividend, Growth, Resilience, and Momentum, the bank showcases a robust performance across various key factors. The high Value score further underlines the company’s attractive valuation compared to its peers, indicating a solid investment proposition for potential investors.
Canara Bank Ltd. stands out as a versatile financial entity, offering a wide array of banking services across India. From retail and commercial banking to investment management and treasury services, the company caters to diverse customer needs. With strong scores across important metrics, Canara Bank appears well-positioned to sustain growth and profitability in the competitive banking landscape, making it a promising choice for long-term investors seeking stability and potential returns.
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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