Canara Bank shares in focus as board approves Rs 9,500 crore fundraise for FY26
Canara Bank shares
will be in focus on Friday after the lender said its board has approved a capital-raising plan of up to Rs 9,500 crore for FY26 through the issuance of debt instruments.
In a stock exchange filing, the bank said, 'The Board of Directors of the Bank, in its meeting held on 12/06/2025, has approved the
Capital Raising Plan
for the financial year 2025-26 amounting up to Rs 9,500 crore by way of Debt Instruments (Additional Tier I /
Tier II Bonds
).'
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Why Seniors Are Snapping Up This TV Box, We Explain!
Techno Mag
Learn More
Undo
by Taboola
by Taboola
The fundraising will be done via
Basel III-compliant bonds
, comprising Rs 6,000 crore in Tier II bonds and Rs 3,500 crore in Additional Tier I (AT1) bonds, subject to market conditions and regulatory approvals.
Also Read:
SBI, Bank of Baroda among 10 banks that saw NPA decline in Q4
Q4 earnings highlights
Canara Bank
reported a 33% year-on-year (YoY) jump in net profit to Rs 5,002.7 crore in Q4, compared to Rs 3,757 crore in the same quarter last year. Net interest income (NII) rose marginally by 1.4% YoY to Rs 9,442 crore.
Live Events
The bank's NII and operating profit were ahead of estimates. Asset quality also improved, with the gross NPA ratio declining to 2.94% from 3.34% in the previous quarter. Net NPA fell to 0.70% from 0.89%.
The provision coverage ratio (PCR) rose to 92.70% from 91.26% in Q3FY25. However, slippages increased to Rs 2,702 crore from Rs 2,464 crore in the previous quarter, and slightly exceeded market estimates of Rs 2,650 crore.
Also Read:
JSW Steel, Aurobindo Pharma among 6 large & midcap firms with promoter pledge decline in Q4
Stock performance
According to Trendlyne, the average target price for Canara Bank stands at Rs 113, implying a potential downside of about 2% from current levels. Of the 17 analysts tracking the stock, most have a 'Buy' rating.
The stock has rallied 15% in the past month and 40% over the last three months. Canara Bank currently has a market capitalisation of Rs 1,04,947 crore.
(
Disclaimer
: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
24 minutes ago
- Time of India
State Bank India cuts SB rate to lowest, FDs' by 25 base points
Representative image (Photo: ANI) MUMBAI: India's largest lender, State Bank of India, has cut returns for depositors again. Effective June 15, the bank reduced interest rates on retail term deposits of up to Rs 3 crore by 25 basis points across tenures. Simultaneously, it brought down the savings account rate to 2.5 per cent, its lowest ever. These cuts apply to both new and renewing deposits, reflecting a wider easing in deposit yields after the RBI reduced the repo rate by 50 basis points earlier this month. The rationale behind the uniform cut is protect the bank's margins. Around 45 per cent of SBI's Rs 36 lakh crore loan book is linked to the repo rate. These include home loans (Rs 8.3 lakh crore) and auto loans (Rs 1.2 lakh crore). The bank's best home loan rates for new loans are now 7.5 per cent. The cut in the benchmark rate is estimated to lower the bank's annual interest income by about Rs 8,100 crore. Reducing savings deposit rates is the most immediate way for SBI to limit that hit. The cut in savings deposit rates, in particular, provides quicker relief. With Rs 23 lakh crore in such accounts, the lower payout enables the bank to save an estimated Rs 5,750 crore annually. SBI is not alone. HDFC Bank recently trimmed its savings account rate on high-value deposits to a flat 2.75 per cent across balances and lowered fixed deposit rates by up to 25 basis points. ICICI Bank, Canara Bank, and YES Bank have also cut fixed deposit rates. These moves aim to protect net interest margins at a time when credit growth is moderating. For depositors, it marks yet another reduction in already low returns. The deregulation of savings rates had raised hopes of more competition among banks, but the trend has gone the other way. SBI's savings rate, which was 4 per cent in the early 2000s, slipped to 3.5 per cent by 2003, fell further over the next decade, and hit 2.7 per cent by 2020. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
29 minutes ago
- Time of India
High on mangoes! State's first mango winery gets inaugurated in Malihabad
Lucknow: Looking for a wine tour? Now, look no farther than the city outskirts. On Sunday, the first winery that is going to produce alcoholic beverages through mango and a variety of local fruits was flagged off in Malihabad's Mal area. Set up inside a 100-acre mango orchard, the winery has been set up with a budget of close to Rs 10 crore. Excise minister Nitin Agarwal inaugurated the facility along with other senior officials. Winery founder and operator Madhavendra Deo Singh said that the products would be available at the winery for those who want to buy it and day tour would be on offer after two months. A native of Mal area, Madhvendra said that four products are ready for the launch which have been produced only with the locally grown fruits at the farm and by the farmers in the Mal – Malihabad region. To be priced between Rs 300 and Rs 1,200 the wine bottles would be available in various sizes. "I want to emphasise that wine produced at our establishment is made using only natural ingredients and without any chemicals. I can assure you that we would not be adding ethanol or added sugars as we go forward as well," said the 40-year-old horticulturist who pursued MBA in agricultural business management. Singh set up a private company named Mbrosia Nature Living two years ago before signing up a memorandum of understanding with the horticulture department of the UP govt during the last investors' summit. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Esse novo alarme com câmera é quase gratuito em Senador Canedo (consulte o preço) Alarmes Undo To attract investments and boost income of the farmers, the excise department in March 2022 had introduced the concept of 'made in UP' wine. No excise duty is levied over the beverages that are produced using local fruits. Singh said that the four products that are ready to hit the stores have been made using mango, honey, mulberry, mint among other local fruits. "We have also made braggot, a hybrid beverage combining elements of both beer and mead," he added.
Time of India
29 minutes ago
- Time of India
NY court jails 6 NRIs in $15 million hawala case
1 2 Ahmedabad: A group of six Gujarati men, all living illegally in the US, were convicted of running a hawala network. They were found guilty of illegally moving nearly $15 million between the US and India over a period of six months in 2023. Their final sentencing, ranging from 12 to 27 months, was delivered by a New York federal court on June 5. The mastermind, Hirenkumar Patel, 40, was sentenced to 21 months in prison. He earlier pleaded guilty to participating in 42 cash deliveries amounting to over $7.7 million across various locations on the US East Coast. According to case details, the group moved the money between Feb and Sept 2023, using an informal transfer system that relied on physical cash deliveries and the use of informal brokers to transfer funds to designated recipients in India without the money physically leaving the US. Officials said the accused collected large amounts of cash from individuals in the US, which was then delivered to customers of a vendor operating on the dark web. This vendor converted cryptocurrency into cash for clients, the top ones being hackers and drug dealers. None of the six Gujaratis had licences to operate a money-transmitting business under federal or New York state law. The Federal Bureau of Investigation, along with the US Postal Inspection Service and the US Attorney's Office for the Eastern District of Kentucky, led the investigation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch vàng CFDs với sàn môi giới tin cậy IC Markets Tìm hiểu thêm Undo Rajendrakumar Patel, 52, received 27 months in prison; Brijeshkumar Patel, 32, was sentenced to 18 months; Naineshkumar Patel, 51, received 12 months and one day; Nileshkumar Patel, 33, was sentenced to three years of probation, while Shaileshkumar Goyani, 36, received a sentence of time served. All six had been living in the US without legal immigration status.
