August 12, 2025
6 mins read
Source: Screener.in/Trendlyne/Economic Times/Live Mint/Moneycontrol
Canara Bank is one of India’s oldest public sector banks. It offers banking services to individuals, businesses, and NRIs. For individuals, it provides savings accounts, loans, credit and debit cards, mutual funds, and digital banking. Corporate clients can access services such as loans, cash management, and IPO-related support. NRIs benefit from remittance and advisory services. The bank was founded in 1906 by Shri Ammembal Subba Rao Pai in Mangalore. After nationalisation in 1969, Canara Bank expanded quickly across India. Today, it operates a wide network and serves millions of customers across various regions.
Source: Canara Bank website
Details | Information |
Founded Year | 1906 |
Industry Type | Banking and Financial Services |
Headquarters | Bengaluru, Karnataka, India |
Key People | K. Satyanarayana Raju (MD & CEO) |
Canara Bank began its journey in July 1906 in Mangalore, Karnataka. It started as a small community-based bank and grew significantly after being nationalised in 1969. The 1980s marked a phase of expanding into new services. In 2006, the bank completed 100 years of service. Over time, it developed a network of subsidiaries and partner institutions, both in India and overseas. As of March 2025, Canara Bank operates 9,849 branches and 11,144 ATMs, serving over 11.76 crore customers across India.
Canara Bank is a part of the public sector banking system in India and functions under the Ministry of Finance. It is regulated by the Reserve Bank of India (RBI). The bank plays a key role in the country’s financial system by offering services to retail customers, corporations, and underserved communities. Its focus areas include expanding digital access, rural banking, and supporting financial inclusion.
Canara Bank operates through several major segments. Its treasury division deals with government securities and related investments. Retail banking includes services like savings accounts, home and personal loans, and cards. Corporate banking serves large businesses through credit and financial advisory. The bank also owns or sponsors various subsidiaries such as Canara HSBC Life Insurance, Canara Robeco Mutual Fund, Canfin Homes (housing finance), and Canara Bank Securities, which offers broking and depository services.
A public sector bank with national reach and multiple businesses in banking, insurance, and investment services.
Vision: Canara Bank aims to become a trusted and efficient bank by setting high standards in financial performance, customer service, asset quality, and digital growth.
Mission: The bank works to deliver modern banking solutions using technology, improve ease of doing business, and ensure value for customers, shareholders, and society through inclusive financial practices.
Canara Bank has introduced several firsts in Indian banking. These include setting up inter-city ATM networks, offering credit cards to farmers, and opening women-focused branches. It also launched an IT services subsidiary. In FY 2023–24, it achieved gross global business of over ₹22 lakh crore. Net profit rose 37.25% from the previous year, reflecting improved performance and operational strength.
For FY 2025–26, Canara Bank plans to raise ₹9,500 crore in capital. This includes ₹6,000 crore through Tier II bonds and ₹3,500 crore through Additional Tier I (AT1) bonds. The move is intended to support future lending and business expansion. The fundraising will depend on market conditions and regulatory approvals.
Canara Bank has shown steady financial performance with improved profitability and operational efficiency.
In FY 2025, Canara Bank's revenue increased by about 10% to Rs 1,21,601 crore from Rs 1,10,518 crore in FY 2024. Net profit rose nearly 17% to Rs 17,336 crore from Rs 14,782 crore. This rise indicates better operational management, increased lending, and improved interest margins.
Ratio | FY 2025 |
Return on Equity (ROE) (%) | 17.72 |
Return on Assets (ROA) (%) | 1.01 |
Cost to Income Ratio (%) | 54.57 |
Interest Income to Earning Assets (%) | 7.02 |
Interest Expense to Earning Assets (%) | 4.77 |
Price to Earnings (P/E) (x) | 0.92 |
Price to Book (P/B) (x) | 0.16 |
Price to Sales (P/S) (x) | 0.13 |
Operating Profit Margin (%) | 24.77 |
In Q4FY25, Canara Bank reported a strong net profit of ₹5,004 crore, marking a 33% increase year-on-year, which suggests improved efficiency and stronger earnings. Operating profit also grew 5.7% compared to the previous quarter, indicating stable core business operations. However, Net Interest Income (NII) dipped slightly by 1.4% to ₹9,442 crore, hinting at pressure on lending margins. Asset quality improved, with Gross NPA reducing to 2.94% and Net NPA to 0.70%, showing better loan recovery and lower defaults. The bank declared a ₹4 dividend per share. Deposits grew by 11% and advances by 12%, reflecting healthy growth in customer business.
The stock has seen fluctuations over the past year, influenced by broader market trends and financial results.
Canara Bank's share price has moved both up and down over recent months. On June 16, 2025, it was around Rs. 111.24. The average price stands at Rs. 110.61. This slight decline over the last week shows a minor downtrend. Over three years, the stock gained 196.45%, far higher than the Nifty 50's 60.52%. This may suggest long-term investor interest despite short-term volatility.
The highest price in the last 52 weeks was Rs 121.89 in June 2024, while the lowest was Rs 78.60 in March 2025. This wide range highlights the stock's volatility, possibly driven by market conditions and earnings reports.
Widespread Branch Network: Canara Bank has a strong physical presence in both cities and smaller towns, helping it reach a broad customer base across the country.
Government Support: As a public sector bank, it benefits from regulatory oversight and backing, which can provide confidence to depositors.
Multiple Business Areas: Income comes from various segments like personal banking, corporate loans, and government securities. This reduces reliance on a single source.
Regular Dividends: The bank has a track record of paying dividends, which shows a steady return of profits to shareholders over the years.
High Competition: Private banks and fintech companies often offer quicker, more tech-driven services, which can draw customers away.
Share Price Volatility: The stock tends to see frequent price changes, which may be a concern for short-term investors.
Impact of Rate Changes: A large part of the bank’s loans are tied to benchmark rates, so RBI rate changes quickly affect earnings.
Risk in Some Sectors: Lending to sectors like infrastructure or steel carries some risk if those industries struggle, which can affect loan recovery.
Solid financial performance with consistent profitability and dividend payments.
Metric | Value |
P/E Ratio (x) | 5.72 |
EPS (TTM) | 19.34 |
ROE (%) | 17.72 |
ROCE (%) | 1.01 |
P/B Ratio | 0.99 |
Book Value (Rs) | 116 |
Dividend Yield (%) | 3.62 |
Face Value (Rs) | 2.00 |
As of March 2025, the investor shareholding pattern in Canara Bank is as follows:
Category | Percentage |
Promoters | 62.93% |
FII | 10.54% |
DII | 11.73% |
Mutual Funds | 4.67% |
Others | 14.79% |
Canara Bank competes with major public and private sector banks in India.
Bank | Price | MCap (Cr) | P/E | P/B | ROE (%) | 1Yr Return (%) | NIM (%) |
Canara Bank | 110.6 | 1,00,330 | 5.72 | 0.98 | 17.72 | -6.48 | 2.24 |
SBI | 795.4 | 7,09,864 | 9.15 | 1.48 | 16.87 | -4.48 | 2.59 |
Bank of Baroda | 237.8 | 1,22,985 | 5.94 | 0.91 | 14.14 | -15.25 | 2.66 |
PNB | 105.2 | 1,20,928 | 6.54 | 0.95 | 13.88 | -15.87 | 2.33 |
Union Bank | 147.0 | 1,12,282 | 6.23 | 1.04 | 15.85 | 3.96 | 2.49 |
Canara Bank holds a strong place among public sector banks. It is known for its reach, stable financials, and balanced portfolio. Though not the largest, it is consistently ranked among the top players in the government banking space. Its strategy includes expanding rural services and strengthening digital channels.
Digital expansion, rural focus, and lending growth could shape its future.
The bank sees credit growth of about 10-11% in FY26. Digital banking, rural lending, and better provisioning present future potential. It plans to strengthen its position through financial inclusion and improved services. The bank's long history and wide presence are expected to support further growth.
Some loan sectors, such as steel and infrastructure, carry risk. Cost of deposits may pressure margins. Rising competition from private and fintech players is also a challenge. Cybersecurity remains a concern with increased digital operations. As a public sector bank, it also faces tighter compliance checks and slower decision-making.
You can follow Canara Bank's share price using financial websites like NSE India, BSE India, or investment apps. News platforms, brokerage services, and stock market dashboards also provide live updates. Look at the opening price, daily highs/lows, trading volume, and any recent news affecting the bank. These help understand market behaviour.
Canara Bank is a government-owned public sector bank under the Ministry of Finance.
Canara Bank is listed on both major Indian stock exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Investors can trade its shares under the ticker symbols “532483” on BSE and “CANBK” on NSE, subject to market availability and trading hours.
The face value of Canara Bank shares is ₹2.00 per share. Face value is the original cost of the share as listed in company records and is different from the market price, which fluctuates based on supply, demand, and company performance in the stock market.
As of now, Canara Bank has not reported any recent stock splits or bonus share issues. Investors can check historical corporate actions through stock exchange filings or the bank’s Investor Relations section for the latest updates on any such announcements or past corporate changes.
The official website of Canara Bank is www.canarabank.com. For customer service support, you can call their toll-free helpline at 1800 425 0018. The website also provides information on products, services, investor updates, online banking, and customer grievance redressal options.
Yes, Canara Bank regularly shares investor-related information through its website’s Investor Relations section. This includes quarterly financial results, annual reports, press releases, stock exchange filings, and updates about corporate actions, helping investors stay informed about the bank’s performance and strategic developments.
Canara Bank operates by accepting customer deposits and lending to individuals, businesses, and institutions. It earns revenue through interest income, fees, and commissions. The bank also offers services like insurance, mutual funds, and digital banking through its subsidiaries and joint ventures to support diversified income streams.
Canara Bank is led by Managing Director and Chief Executive Officer K. Satyanarayana Raju, supported by executive directors and an independent board.
The bank serves a wide range of customers, including retail depositors, farmers, small and medium enterprises, large corporations and government entities.
Canara Bank has reported strong growth in revenue and profitability between FY2021 and FY2025 as asset quality improved and net interest income increased; specific figures should be confirmed from official annual reports.
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This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing.
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