Canara Bank Shares Rise Despite Analysts Lowering Growth Targets
Canara Bank share price up 2%; Analysts cut target on lower FY27 guidance
Business Standard
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Canara Bank's share price increased by 2.3% to reach a high of ₹132.35 per share on May 12, 2026, outperforming the market. Analysts have cut their FY27 growth targets due to lower net interest margin (NIM) guidance and treasury losses, projecting a credit growth of 11-12%.
- 01Canara Bank's share price rose 2.3% to ₹132.35 per share.
- 02The bank reported a 10% year-on-year decline in Q4FY26 net profit.
- 03Analysts have reduced FY27 credit growth guidance to 11-12%.
- 04Net interest margin guidance for FY27 has been lowered to 2.5-2.6%.
- 05Motilal Oswal and Emkay Global maintain a target price of ₹160.
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On May 12, 2026, Canara Bank's share price surged by 2.3%, reaching a peak of ₹132.35 per share, despite a mixed outlook from analysts. The bank reported a 10% year-on-year decline in net profit for Q4FY26, totaling ₹4,500 crore, while net interest income grew by 4% year-on-year to ₹9,800 crore. However, the bank's management has lowered its net interest margin (NIM) guidance for FY27 to 2.5-2.6%, down from 2.75-2.85% in FY26, and reduced credit growth expectations to 11-12% compared to 16% in FY26. Analysts from Motilal Oswal Financial Services and Emkay Global Financial Services have cut their earnings estimates by 6% and 4% for FY27 and FY28, respectively, while maintaining a target price of ₹160 for the stock. Despite these challenges, the bank's loan book grew by 16.3% year-on-year, driven by a 33% increase in the retail segment.
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The reduced growth targets may influence investor sentiment and could affect loan availability for consumers, impacting homebuyers and businesses seeking credit.
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