Canara Bank Share Price Today (5 December 2025): RBI Rate Cut Boost, Q2 Results and 2026 Target Price Outlook

Updated: 5 December 2025

Canara Bank share price today: trading near recent highs

Canara Bank’s share price was around ₹148–149 in mid-day trade on 5 December 2025, with the stock quoted at about ₹148.9 on the NSE and intraday lows and highs of roughly ₹146.7 and ₹149.5 respectively. ^[1]

That puts Canara Bank only a few rupees below its 52‑week high near ₹154, while the 52‑week low is around ₹78–79, meaning the stock has nearly doubled from its lows over the past year. ^[2]

On a return basis, Business Standard data show: ^[3]

About 6–7% gain over one month
Around 39% gain over three months
Roughly 37–38% gain over one year

That performance comfortably beats the Sensex and Nifty returns over the same periods, highlighting how strongly PSU banks – and Canara Bank in particular – have rerated in 2025. ^[4]

Valuation snapshot

Depending on the data provider, Canara Bank is trading at:

Price-to-earnings (P/E): around 7.7x trailing earnings
Price-to-book (P/B): roughly 1.2x trailing book value
Dividend yield: between ~2.7% and ~4.5%, depending on whether consolidated numbers and special dividends are used. ^[5]

These multiples are in line with commentary that large PSU banks generally trade around 0.8–1.0x forward book despite delivering ROE in the mid‑teens to high‑teens, cheaper than many private-sector peers. ^[6]

Macro tailwind: RBI repo rate cut lifts PSU banks

Today’s big macro driver is the Reserve Bank of India’s Monetary Policy Committee (MPC), which cut the repo rate by 25 bps to 5.25% while maintaining a neutral stance. ^[7]

This is the fourth repo cut in 2025, taking cumulative easing to 125 bps from 6.5% at the start of the year. ^[8]
The RBI also nudged up its FY26 GDP growth forecast to about 7.3%, signalling confidence in India’s growth trajectory alongside very low recent inflation prints. ^[9]

Rate‑sensitive pockets responded quickly:

Business Standard reports that the Nifty PSU Bank index was up about 1% intraday, with bank, auto, realty and financial services indices all trading firm after the policy decision. ^[10]
A separate Business Standard analysis notes that bank stocks – including Canara Bank – have surged over 55% since the first rate cut in February 2025, with the PSU Bank index up about 33% in that period. ^[11]

For Canara Bank, the rate cut is a mixed but generally supportive signal: funding costs should gradually ease, though lower rates also tend to compress net interest margins (NIMs) as lending yields adjust. Analysts quoted in today’s coverage are split on how much further the banking rally can run, precisely because margins may face pressure even as credit growth stays healthy. ^[12]

Latest stock‑specific news: bonds, volumes and “stocks in focus”

Beyond macro news, several recent developments keep Canara Bank in traders’ and investors’ watchlists:

AT1 bond issue: An HDFC Sky market note highlights that Canara Bank has raised ₹3,500 crore via Basel‑III compliant Additional Tier‑1 (AT1) bonds, strengthening its capital buffers while locking in funding before rates fall further. ^[13]
Stocks in news lists: Economic Times and other broker commentary put Canara Bank among the key “stocks in focus” this week alongside names like Vedanta, Maruti Suzuki, KPI Green and CEAT, driven by the bond issue and the policy backdrop. ^[14]
High trading activity: MarketsMojo has repeatedly flagged robust trading by value and volume in Canara Bank through early December, with the stock featuring among the more actively traded PSU counters, indicating sustained institutional and retail interest. ^[15]

Taken together, the stock is not just riding a sector‑wide PSU banking wave; it is also in the cross‑hairs of capital‑market activity (AT1 fund‑raising) and short‑term trading flows.

Fundamentals: Q2 FY26 results show strong profit and growth

Canara Bank’s most recent quarterly results are for Q2 FY26 (July–September 2025), and they were solid: ^[16]

Net profit: Up about 18.7–19% year‑on‑year to ₹4,774 crore.
Operating profit: Grew roughly 12% YoY to around ₹8,588 crore.
Global business: Expanded 13.55% YoY to nearly ₹26.8 lakh crore, with both
- Global deposits up ~13.4% to ₹15.28 lakh crore, and
- Global advances up ~13.7% to ₹11.51 lakh crore.
CASA base: Current and savings account deposits climbed about 10.5% YoY to ₹4.28 lakh crore, with current accounts growing particularly fast. ^[17]

There is, however, a margin wrinkle:

Net interest income (NII) for Q2 FY26 declined by about 1.9–2% YoY, reflecting pressure from lower lending yields and competition for deposits. ^[18]

Despite this NII compression, strong other income and lower credit costs allowed Canara Bank to deliver higher profits and maintain a Return on Assets (ROA) around 1.1–1.2%, a level once reserved for stronger private banks. ^[19]

Q1 FY26 context: momentum was already strong

Q1 FY26 (April–June 2025) had already set a positive tone: ^[20]

Net profit for the quarter rose ~21–22% YoY to about ₹4,750 crore.
Global business grew around 10.9% YoY to ₹25.6 lakh crore, with deposits up 9.9% and advances up 12.4%.
Retail credit surged nearly 34% YoY, led by housing and vehicle loans.

Management emphasised that the bank has outperformed its own guidance for eight quarters in a row, attributing this to better underwriting, centralised loan approvals and extensive use of data analytics in monitoring loans. Slippages have fallen sharply, and fresh corporate NPAs are described as “almost zero”. ^[21]

The Q1 and Q2 prints together paint a picture of a PSU bank behaving much more like a steady compounder than a cyclical turnaround story.

Asset quality: near decadal best levels

A key reason the market has re‑rated Canara Bank is the sharp improvement in asset quality.

From the Q2 FY26 update and investor analyses: ^[22]

Gross NPA (GNPA) ratio has fallen to about 2.35%, down roughly 138 bps YoY from around 3.7% in the same quarter last year.
Net NPA (NNPA) is now close to 0.54%, about 45 bps lower YoY.
Provision Coverage Ratio (PCR) has strengthened to about 93–94%, up nearly 270 bps YoY.
Credit cost is running at well under 1% (around 0.7%), giving the bank room to absorb shocks without jeopardising profitability.

A widely circulated institutional analysis summarised Q2 FY26 as “asset quality at its best levels in years”, pointing out that GNPA and NNPA are steadily improving each quarter while the retail book and RAM (Retail, Agriculture, MSME) segments keep growing. ^[23]

In plain terms: the balance sheet looks much cleaner than in the previous PSU banking cycle, which makes the current rally feel more structural than purely sentiment‑driven.

Capital strength and growth capacity

Canara Bank’s capital ratios also look comfortable for further growth:

Capital Adequacy Ratio (CRAR) is around 16.2%, with CET1 near 12.2%, according to Q2 FY26 commentary based on the bank’s investor presentation. ^[24]
The recent ₹3,500 crore AT1 bond issue further adds to its Tier‑1 capital and supports future loan growth. ^[25]

The bank is also expanding its physical and digital footprint:

It already operates close to 10,000 branches and over 7,400 ATMs/cash recyclers, with plans to keep opening around 250–260 branches annually, particularly in semi‑urban and rural markets. ^[26]
Management has highlighted the use of AI and analytics for branch location planning and for targeting retail and MSME customers. ^[27]

This combination of strong capital, expanding distribution and improved risk metrics is exactly what many institutional investors look for in a long‑term “compounder” thesis in banking.

PSU bank rally: where Canara Bank stands

The broader Nifty PSU Bank index has been one of the standout performers of 2025, delivering around 30–33% gains and beating the private‑bank index for the third year running. ^[28]

Within that context:

Business Standard reports that Canara Bank’s credit growth in Q2 FY26 was about 14.8% YoY, ahead of several private peers. ^[29]
Analysts quoted in the same piece argue that PSU banks are now delivering around 1–1.1% ROA and 16–18% ROE, yet still trade at a discount to private banks on price‑to‑book multiples. ^[30]

Another Business Standard article published today notes that a basket of banks including Canara Bank has rallied over 55% since the first rate cut in February, and that both PSU and private bank indices have comfortably outperformed the Nifty in this rate‑cut cycle. ^[31]

The key debate now is whether this re‑rating is largely done or whether there is still room for further upside as earnings compound and valuations converge towards private‑bank peers.

Shareholding pattern: rising institutional interest

The latest shareholding data (September 2025 quarter) show a healthy mix of government, institutional and retail investors: ^[32]

Promoter (Government of India): ~62.93%
Foreign Institutional Investors (FII/FPI): ~11.9%
Domestic institutions (DII, including mutual funds and insurance): ~12–12.5%
Retail and others: ~12.9%

Trendlyne’s breakdown also highlights: ^[33]

LIC holding a little over 5% of the bank.
Well‑known investor Rekha Jhunjhunwala holding around 1.6%.

Incremental FII flows into the stock over recent quarters suggest that global investors are beginning to treat large PSBs like Canara Bank as core India financials exposure, rather than purely speculative turnaround bets. ^[34]

Street view: target prices, ratings and long‑term forecasts

Consensus analyst targets (12‑month view)

According to INDmoney, using S&P Global data: ^[35]

Average target price: ~₹147.1
Current price: ~₹148.9
Implied upside: essentially flat (slight downside) from today’s level
Analyst stance:
- ~82% BUY
- ~6% HOLD
- ~12% SELL
- Based on 19 analysts.

Trendlyne shows a very similar consensus target of around ₹147, based on a smaller set of recent broker reports, again suggesting that the stock is trading close to what the sell‑side considers fair value in the near term. ^[36]

Brokerage reports from houses like Motilal Oswal, Emkay and InCred through 2025 have generally carried ‘Buy’ or ‘Accumulate’ recommendations, with earlier target prices in the ₹115–135 range that are now largely achieved after this year’s rally. ^[37]

Short‑term trading calls

An August 2025 NDTV Profit segment on “five stocks to buy today” featured Canara Bank with a suggested short‑term target of ₹123 and a stop‑loss of ₹108. At that time the stock was lower; subsequent price action has already taken it well beyond that trading target. ^[38]

Long‑term forecast pieces

Several public analyses attempt to project share price trajectories out to 2030. These are not official guidance from the bank but rather working assumptions by market writers:

A widely shared Investing.com article outlines a path where the author expects the stock to move from the mid‑₹100s in 2025 toward the upper‑₹300s by 2030, assuming sustained earnings growth and stable asset quality. ^[39]
Quant‑style and algorithmic forecast sites that track Canara Bank generally indicate modest upside over the next 12–24 months, but such models are mechanically driven by past price patterns and should be treated cautiously. ^[40]

On the qualitative side, a November 2025 Smartkarma research note asks whether Canara Bank’s “compounder thesis” remains intact amid NIM compression, concluding that strong asset‑quality trends, volume growth and potential value unlocking from subsidiaries (such as the asset‑management JV) support a constructive long‑term view. ^[41]

Subsidiary monetisation: Canara Robeco AMC IPO

One potential medium‑term catalyst is the IPO of Canara Robeco Asset Management Company, a joint venture between Canara Bank and ORIX.

Reuters reports that the AMC set a price band of ₹253–266 per share, aiming for a valuation of about ₹5,305 crore, with Canara Bank selling about 25.9 million shares, trimming its stake by roughly 13 percentage points. ^[42]

Successfully listing and partially monetising such businesses can unlock value and improve capital ratios, though it also reduces future earnings contribution from the subsidiary.

Key factors to watch for 2026

For investors tracking Canara Bank stock in 2026, the main variables to monitor are:

NIM trajectory in a rate‑cut cycle
- Multiple rate cuts in 2025 have aided loan growth but could squeeze margins if deposit rates don’t adjust down as quickly. ^[43]
Credit growth vs. deposit mobilisation
- Q2 FY26 credit growth around 14–15% is strong; sustaining this without stretching the credit‑deposit ratio will be crucial. ^[44]
Asset‑quality resilience
- GNPA at 2.35% and NNPA around 0.5% are excellent by PSU‑bank standards; any reversal of this trend would quickly show up in valuations. ^[45]
Subsidiary outcomes and capital actions
- How the market values Canara Robeco AMC post‑listing and whether Canara Bank pursues more stake sales or fresh equity issuance will affect per‑share economics. ^[46]
Government policy on PSU banks
- Possible further consolidation or stake dilution among PSBs could change the competitive landscape and free‑float profile, potentially boosting indices and valuations. ^[47]

Risks to the Canara Bank investment story

Despite the strong setup, several risks could challenge the current bullish narrative:

Margin compression: With repo rates already cut four times this year, spreads between lending and deposit rates may narrow further, hurting NII even if loan volumes grow. ^[48]
Deposit competition: If deposit growth lags credit growth, the bank may need to offer higher rates or rely more on wholesale/bond funding, affecting profitability. ^[49]
Credit cycle turn: Retail and MSME books are growing rapidly; any economic slowdown or policy shock could increase slippages in these segments. ^[50]
PSU governance overhang: As a state‑owned bank, Canara remains exposed to regulatory or policy moves (for example, directed lending or further consolidation) that might not always prioritise minority shareholders. ^[51]

Bottom line

As of 5 December 2025, Canara Bank stock sits at the intersection of:

A very strong earnings and asset‑quality cycle,
A powerful PSU banking rerating, and
A fresh RBI rate‑cut tailwind that benefits credit growth but raises questions about margins.

The market’s message is clear: much of the obvious good news is already in the price, as shown by consensus 12‑month targets clustering close to the current share price even while most analysts still rate the stock a Buy. ^[52]

For anyone following Canara Bank – whether as an investor, trader, or just a banking‑sector watcher – the story from here is less about “is it broken?” and more about “how long can this PSU compounder phase last before margins or the cycle catch up?”

References