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Canara Bank shares rally to new 52-week high on robust Q3 results

EditorAmbhini Aishwarya
Published 2023-10-31, 05:04 a/m
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Canara Bank's shares have hit a new 52-week high, rallying about 34% YoY since October 26, and outperforming the Sensex's 5% gain. The bank's shares spiked over 2% to a yearly peak of ₹390.55 on Tuesday, marking the fourth consecutive day of gains. The surge was driven by the bank's strong Q3 results, which included a net profit upsurge of 43% to ₹3,606 crore (INR100 crore = approx. USD12 million), nearly a 20% increase in net interest income, and a decline in gross non-performing assets to 4.76%.

The stock started Tuesday's trading at ₹383.25, higher than the preceding close of ₹382.55, and achieved a midday climb of 1.27% to ₹387.40 on BSE. This upward trajectory was triggered by the bank's September quarter earnings announcement.

Stable revenue growth and lower provisioning supported the performance. Additionally, MCLR re-pricing is expected to sustain margins. Brokerages such as Motilal Oswal Financial Services and JM Financial retain their buy calls based on positive RoA and RoE projections.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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