Canara Bank Share Price Today (8 December 2025): Rally Cools After 52-Week Highs, Q2 FY26 Earnings, AT1 Bonds and Fresh $100 Million Loan

Canara Bank’s stock has had a busy few weeks — new 52‑week highs, strong Q2 FY26 results, a big AT1 bond issue, a lending-rate cut, and even a fresh US$100 million offshore loan. On 8 December 2025, the share price is consolidating after a sharp run-up, while most analysts remain broadly positive but a bit more cautious on upside.

Canara Bank Share Price Today: Key Levels on 8 December 2025

As of late morning on 8 December 2025, Canara Bank (NSE: CANBK, BSE: 532483) is trading around:

₹144.45 on NSE, down about 2.8% from the previous close of ₹148.64.
Day’s range: roughly ₹143.9 – ₹148.9.
52‑week range:₹78.60 (low) to ₹154.21 (high). ^[1]
Market cap: about ₹1.31 lakh crore. ^[2]

On valuation metrics:

P/E (TTM): ~7.7x
P/B: ~1.2–1.25x
Dividend yield: around 2.7%. ^[3]

The stock has:

Gained ~24% over the last six months and
About 34% over the last one year, despite the recent pullback. ^[4]

Within the NIFTY PSU Bank index, Canara Bank now carries a weight of about 7.4%, making it one of the top four constituents of the PSU banking pack. ^[5]

From 52-Week Highs to a Cool‑Down: How the Stock Reached Here

PSU bank rally and new highs

On 31 October 2025, Canara Bank was among six PSU banks that hit fresh 52‑week highs. Economic Times data showed the stock touching a new high of ₹138.55, with the price around ₹136.95, and logging an ~11% gain over one month at that time. ^[6]

Since then, the rally extended further:

The 52‑week high moved up to ₹154.21, with several sources (ICICIdirect, Investing.com, StockInvest) now listing the range as ₹78.6–₹154.2. ^[7]

Even after the recent dip to the mid‑₹140s, investors sitting on a one‑year holding period are still significantly in the green.

Profit-taking after AT1 bond issue

Short‑term volatility picked up in early December:

On 3 December 2025, the stock fell about 4% intraday to ~₹145.7 after the bank announced a major Basel III Additional Tier‑1 (AT1) bond issue. ^[8]

Canara Bank has:

Raised ₹3,500 crore via Basel III‑compliant AT1 perpetual bonds at a coupon of 7.55%, as disclosed in exchange filings and summarised by multiple outlets. ^[9]

AT1 bonds are loss‑absorbing perpetual instruments that boost core Tier‑1 capital without diluting equity. For equity shareholders, that’s usually positive for solvency and growth capacity, but the immediate market reaction often includes:

Some profit‑taking after a strong rally.
A little nervousness around AT1 instrument risk (given global AT1 precedents) even though this is a standard capital tool.

Lending Rate Cut: MCLR Reduced by 5 bps

Another important recent move is on lending rates:

Canara Bank cut its Marginal Cost of Funds Based Lending Rates (MCLR) by 5 basis points across all tenors, effective 12 November 2025. ^[10]

Post‑cut, the new MCLR slab is roughly:

Overnight: 7.90%
1‑month: 7.95%
3‑month: 8.15%
6‑month: 8.50%
1‑year: 8.70%
2‑year: 8.85%
3‑year: 8.90% ^[11]

For borrowers with MCLR‑linked loans, this is slightly EMI‑friendly. For shareholders, it’s a mixed bag:

Positive: can support credit growth, especially in retail and SME segments.
Risk: combined with already softening Net Interest Income (NII) in Q2 (down 2% YoY), this can pressure margins if deposit costs don’t ease proportionately. ^[12]

Fresh US$100 Million Loan: Diversifying Funding

In the international funding arena, trade finance publication IFR reports that Canara Bank has raised a US$100 million loan in the syndicated loan market in recent days. ^[13]

Details like tenor and pricing are not fully public, but the takeaway is:

The bank continues to tap offshore markets, broadening its liability profile beyond domestic deposits and bonds.
For a balance sheet running into ₹26.8 lakh crore of global business, US$100 million is small in quantum but relevant as a signal of funding access and diversification. ^[14]

Q2 FY26 Results: Strong Profit, Slight NII Pressure, Better Asset Quality

The big fundamental driver behind the stock’s 2025 rerating has been steady earnings and cleaner asset quality.

Profit and income growth

For Q2 FY26 (quarter ended 30 September 2025), Canara Bank reported (consolidated): ^[15]

Total income: ₹42,013.7 crore
- Up from ₹41,441.5 crore in Q1 FY26 and ₹38,006.1 crore in Q2 FY25.
Interest earned: ₹32,072 crore
Other income: ₹9,942 crore (up a sharp 27% YoY).
Net profit (PAT):
- Around ₹4,865 crore on a consolidated basis (Bajaj Broking summary),
- ₹4,773.96 crore standalone, up ~19% YoY, according to Livemint.
Earnings Per Share (EPS):₹5.35, up from ₹3.52 in Q1 and ₹4.62 in Q2 FY25.
Annualised RoA: roughly 1.1% – solid for a PSU bank.

The nuance: while headline profit grew nicely, Net Interest Income (NII) actually declined ~2% YoY to about ₹9,141 crore, as per Livemint, even as pre‑provision operating profit rose 12% YoY to about ₹8,588 crore on the back of healthy other income. ^[16]

In plain language: earnings are growing, but a chunk of the growth is being helped by treasury and other income rather than core interest margins.

Asset quality: one of the cleanest phases in years

On the balance sheet risk side, Q2 numbers look markedly better than the bank’s historical averages: ^[17]

Gross NPA ratio:
- 2.35% in Q2 FY26 vs 2.69% in Q1 and 3.73% a year ago.
Net NPA ratio:
- 0.54% vs 0.63% QoQ and 0.99% YoY.
Gross NPAs (absolute): down to ₹27,040 crore from ₹29,518 crore QoQ.
Net NPAs: down to ₹6,113 crore from ₹6,765 crore QoQ.
Provision Coverage Ratio (PCR): around 93.6%, up ~270 bps QoQ, giving a thick cushion against stressed loans.

Fresh slippages for the quarter were about ₹2,309 crore, slightly higher than Q1 in absolute rupees but with the slippage ratio improving to ~0.76%, indicating stronger control relative to the growing loan book. ^[18]

For long‑time PSU‑bank watchers, NPAs near 2.3% gross and 0.5% net with >93% PCR represent a remarkably de‑risked balance sheet compared to where the bank was a few years ago.

Growth: deposits, advances and CASA

Canara Bank also reported healthy business growth as of September 2025: ^[19]

Global business: up 13.55% YoY to about ₹26.79 lakh crore.
Global deposits: up 13.40% YoY to ₹15.28 lakh crore.
Domestic deposits:₹13.95 lakh crore, up 12.6% YoY.
CASA (current & savings) deposits: increased 10.5% YoY to ₹4.28 lakh crore, implying a CASA ratio around 30–31%.

A CASA ratio in the low‑30s is not flashy versus top private‑sector peers, but for a PSU bank of Canara’s vintage, it’s a reasonably stable low‑cost funding base – particularly important when term deposit rates for general customers go up to ~7.4% and senior citizens earn up to ~7.9%, per Economic Times FD rate data. ^[20]

Capital Position: AT1 Bonds on Top of Already Comfortable Ratios

Even before the latest bond issue, Canara Bank’s capital adequacy was in decent shape, with total capital ratios comfortably above regulatory minima and common equity Tier‑1 (CET‑1) supported by past raises and improving profitability. Q2 FY26 disclosures and earlier FY25 reports show steady strengthening of capital buffers, helped by: ^[21]

Rising internal accruals (profit retention).
Earlier Q4 FY25 where net profit rose 33% YoY to about ₹5,004 crore, and the bank announced a ₹4 per share dividend (200% on ₹2 face value), while GNPA and NNPA ratios dropped to 2.94% and 0.70%, and PCR rose to ~92.7%. ^[22]

Adding ₹3,500 crore of AT1 capital at a 7.55% coupon further thickens the loss‑absorbing layer and gives management more flexibility to grow the loan book without immediately tapping fresh equity. ^[23]

Analyst Views and Share Price Targets: Mild Upside from Current Levels

Street consensus: broadly positive, but upside has shrunk

On 8 December 2025, consensus data compiled by Investing.com shows: ^[24]

19 analysts covering Canara Bank
- 14 “Buy”,
- 1 “Hold”,
- 2 “Sell”.
Average 12‑month target price:₹147.13
- High estimate: ₹171
- Low estimate: ₹110
- Implied upside from ~₹144: about 2–3%.

Broker‑level snapshots (post‑Q2 FY26) include:

UBS: Buy, target ₹155
Kotak: Buy, target ₹140
Investec: Hold, target ₹130
Morgan Stanley: Sell, target ₹115 ^[25]

Trendlyne’s collated long‑term research reports, which track six reports from four brokers, show a somewhat more cautious view when you include older targets:

A historical average target around ₹129, implying downside versus the current price, although the site also reflects the updated consensus target of ~₹147 as of 8 December 2025. ^[26]

So the short version:

The market has already priced in a lot of the good news.
Most analysts still like the stock, but see limited near‑term upside from the mid‑₹140s unless either earnings surprise positively again or PSU banks re‑rate further.

Valuation vs Peers and the PSU Bank Theme

A recent Economic Times screen of “midcap stocks trading below their industry average PE” highlighted Canara Bank as: ^[27]

Trading at a P/E around 7.9x vs an industry average near 9.6x.
Delivering strong recent returns while still not looking “expensive” on simple multiples.

Within the PSU banking basket:

The NIFTY PSU Bank index is up ~23% over the last year, with Canara Bank’s stock outpacing that at ~33–35%. ^[28]
Heavyweights like SBI still dominate the index, but Canara’s 7.4% weight means flows into PSU‑bank ETFs and index funds are very relevant to the stock. ^[29]

From a purely mechanical standpoint, if PSU banks remain a favorite trade and index inflows persist, Canara Bank tends to ride that wave – both up and down.

Key Positives for Canara Bank Stock

Based on the latest data and coverage as of 8 December 2025, the main bullish arguments for Canara Bank are:

Improving asset quality
- GNPA at 2.35% and NNPA at 0.54% with PCR ~93.6% is a very comfortable zone for a PSU bank. ^[30]
Healthy growth without obvious overheating
- Global business up 13.6% YoY, deposits up 13.4%, with CASA growing above 10%. ^[31]
Reasonable valuations
- Sub‑8x earnings and near‑book valuations, with a dividend yield near 2.7%, still look undemanding versus many private‑sector peers. ^[32]
Strengthened capital base
- The ₹3,500 crore AT1 issue and consistent profit growth help sustain growth without immediate equity dilution. ^[33]
PSU bank tailwind
- As part of a broader PSU‑bank rally driven by strong credit growth, better NPAs and government spending themes, Canara Bank has become a core name in the trade, hitting multiple 52‑week highs through October–December 2025. ^[34]

Key Risks and What Could Go Wrong

Any honest analysis has to grapple with the downside scenarios too:

Margin pressure and NII softness
- Q2 FY26 already showed NII down 2% YoY, and further MCLR cuts could compress margins if deposit costs stay high due to elevated FD rates. ^[35]
PSU sector sentiment
- PSU banks are enjoying a strong cyclical run. A turn in sentiment, or a growth scare, could hurt valuations quickly, especially after a large rally.
AT1 and capital‑market risk
- While AT1 bonds are positive for capital, they also introduce instrument‑specific risk, and any global scare around AT1s could spill over into PSU‑bank sentiment even without bank‑specific trouble. ^[36]
Credit‑cycle surprises
- Current NPAs are low, but slippages can rise if the macro environment worsens or specific corporate exposures turn problematic. Recent enforcement cases involving fraud against Canara Bank (by borrowers, not the bank itself) underline that idiosyncratic credit events still occur even when headline NPA ratios look benign. ^[37]
Policy and regulation
- As a majority government‑owned bank, Canara Bank is always somewhat exposed to policy‑driven lending mandates or sector pushes, which can at times conflict with purely commercial considerations.

Is Canara Bank Stock a Buy at Current Levels?

Putting it together:

Fundamentals: solid profit growth, clearly improving asset quality, and a stronger capital base.
Valuation: still reasonable on P/E and P/B, though much less “cheap” than it was when the rally began.
Technicals and momentum: after hitting a 52‑week high of ₹154.21, the stock is consolidating in the mid‑₹140s with only 2–3% consensus upside left in the average 12‑month target. ^[38]

Most professional research houses and consensus trackers still classify Canara Bank as a “Buy”, but the market has already repriced the bank for much of its balance‑sheet repair and earnings recovery story. From here, future returns will hinge on whether management can keep credit costs low while re‑accelerating core NII growth in a slightly softer rate environment.