Canara Bank is an Indian nationalised bank. It was first established in the year 1906. As of July 2018, the bank has its headquarters in Bengaluru, branches all over India, and a few offices abroad in locations like London, New York, Hong Kong and other places.Market Capitalisation
As of July 25, 2018, Canara Bank’s market capitalisation is about Rs.18,558 crore.
Canara Bank’s Wealth and Recent Performance
- According to the report released by Canara Bank, the bank’s business grew to Rs.9.06 lakh crore in the quarter ending March 2018. This was a solid increase from what it was in the quarter ending December 2017 at Rs.8.77 lakh crore. The bank’s business in the final quarter of the previous financial year was Rs.8.37 lakh crore.
- The advances in the final quarter of the financial year 2016–2017 totalled Rs.3.42 lakh crore. Advances have grown at a steady pace since then, growing to Rs.3.73 lakh crore in the quarter ending December 2017 to Rs.3.82 lakh crore in March 2018.
- The total deposits grew from Rs.5.04 lakh crore to Rs.5.25 lakh crore from the third to the final quarter of the financial year 2017–2018. Notably, the total deposits in the final quarter of the financial year 2016–2017 were Rs.4.95 lakh crore.
- The total interest income earned in the final quarter of the financial year 2017–2018 dropped to Rs.10,223 crore from Rs.10,775 crore in the previous quarter.
- Also, interest expense rose from Rs.7,096 crore in the third quarter of the financial year 2017–2018 to Rs.7,236 crore in the final quarter of the same financial year.
- Costs of deposits have dropped steadily, beginning in the fourth quarter of the financial year 2016–2017 at 6.25% to 5.60% in the corresponding time period in 2017–2018.
- The yield on advances dropped from 8.99% in the final quarter of the financial year 2016–2017 to 8.12% in the corresponding year in the FY2018.
- Net NPA rose from Rs.21,649 crore in March 2017 to Rs.28,542 crore in March 2018.
- The overseas business made a loss of 35.92% over the FY2018.
- Total income has reduced from Rs.48,942 crore in FY17 to Rs.48,195 crore in FY18.
Canara Bank Stock Trends in 2018
- In January 2018, the stock opened at about Rs.360 and had dipped to about Rs.258 by 25 July 2018. The stock followed a mostly downward trend throughout this time period.
- The stock held steady at over Rs.350 till about 15 January 2018, when it dipped. This dip was not steep and did not last for long. The stock recovered and crossed the Rs.350 mark. Then, the stock dipped again by the end of the month to close at about Rs.341.
- February 2018 saw the stock dip some more, gaining a little but dipping again later, thus opening at about Rs.329 in the beginning of the month and closing at about Rs.299 by the end of the month.
- The stock opened at an even lower rate in March than at the end of February. The opening price for the month was about Rs.290. The first week of the month saw a steep dip in prices with the stock going well below Rs.250, closer to Rs.235. The stock recovered a little to end the month at about Rs.263.
- The stock held steady over Rs.250 for the entire month of April 2018. The stock even touched a high of about Rs.287 but dipped again steadily to end the month at close to Rs.265.
- In May 2018, the stock dropped below Rs.250 in the second week and did not regain a price over the Rs.250 mark until about 25 May 2018. The stock then held steady at over Rs.250 for the rest of the month but did not breach the Rs.260 mark. The closing price for the month was about Rs.257.
- For the entire month of June 2018, the stock held steady over the Rs.250 mark for the most part but only barely so. The stock did not recover to its previous levels. The stock even briefly dipped below the Rs.250 mark twice towards the close of the month. The closing price for June 2018 was about Rs.251.
- The stock opened at below Rs.250 in July 2018 and the stock only briefly touched the Rs.250 mark and did not go over it. The stock continued to have a price that was lower than it had in the previous months. The lowest price the stock reached for the month was about Rs.222 but the stock appeared to recover from that slump. By 24 July 2018, the stock had regained a price that was over Rs.250 but only just.
Canara Bank Stock Trends in 2016 and 2017
- In January 2016, the stock opened at about Rs.231 and closed at about Rs.255 in December 2016. The stock was on a downward trend from the opening price for about six months before gaining steadily to close at a higher price at the end of the year in December. The stock had actually gained more before dipping again towards the end of December.
- In January 2016, the stock began at around Rs.231 but it dipped in a steep dive. Before the close of the second week of the month, the stock had dipped below the Rs.200 mark. The lowest price of the stock for the month was about Rs.166. The stock then regained a little towards the end of the month but did not breach the Rs.200 mark. The stock closed at about Rs.188 for the month.
- From the beginning of February 2016 to the end of March 2016, the stock continued to have a price that was lower than Rs.200. The lowest price of the stock in February was about Rs.154 and the lowest price in March 2016 was about Rs.175. The highest price in February was about Rs.191 and that lasted for a day. The highest price in March 2016 was about Rs.187.
- In April 2016, the stock opened at about Rs.193. For most of the month, the price continued to remain below Rs.200. This changed towards the end of the month when the stock again breached the Rs.200 mark on 22 April 2016 by about Rs.2. The stock dropped to Rs.200 by the end of the month. The stock dipped below Rs.200 in May 2016 and then followed a downward trend for the rest of the month. The stock gained only a little to close at about Rs.200 by the end of May 2016. The stock dipped below Rs.200 again in June. A downward trend was observed until about 13 June 2016 after which the stock began a steady climb. By 20 June 2016, the stock had breached the Rs.200 mark and did not dip below that price for the rest of the year. The stock closed at about Rs.212 at the end of the month.
- The stock breached the Rs.250 mark by 20 July 2016. But the stock did not continue to remain over that price. It fluctuated a lot during the final week of July, ending the month at a price of around Rs.243. During the first two weeks of August 2016, the stock fluctuated a lot but began a steady upward climb beginning 17 August 2016. The stock closed for the month at about Rs.272. The first week of September 2016 was also a period of growth with the stock even gaining a price over Rs.300. From the second week to the final week of the month, the stock fluctuated a lot with its price sometimes going over Rs.300 and sometimes below. On 30 September 2016, the stock closed at about Rs.299.
- October was a period of high growth initially with the stock shooting up to about Rs.310 while opening. The stock achieved a peak of about Rs.325 on 5 October 2016. The stock did not regain that high for the rest of the year. The stock dipped lower than Rs.300 briefly in this month but regained a price of over Rs.300 again soon. The stock closed at about Rs.305 at the end of the month. The first week of November 2016 saw the stock dip sharply to less than Rs.300 but the stock gained in price almost instantaneously. The stock dipped again once below Rs.300 but ended the month strongly at around Rs.309. While the stock opened at a price higher than Rs.300 in December 2016, the stock dropped to below that mark by the end of the second week of the month. After that, the stock continued on a downward trend for the rest of the year. It closed at about Rs.253 for the year after sustaining two weeks of drops in price.
- In January 2017, the stock opened at about Rs.255 and closed at about Rs.360 at the end of December 2017. This was a solid and observable increase in 12 months. The stock even gained to over Rs.400 in price at some point during the year but did not manage to sustain that level.
- The stock gained for most of January 2017, except for dip once. The highest price was about Rs.280 and the stock closed at about Rs.279 for the month. February also saw stock gain in the first week to over Rs.300 but this growth was not sustained. The stock closed at about Rs.285 by the end of the month. The stock did not regain a price of over Rs.300 until the closing days of March 2017.
- In April 2017, the stock opened at over Rs.300 and continued on a solid upward trend for the rest of the month. As a result, the stock breached the Rs.350 mark and closed for the month at about Rs.357. The month of May 2017 saw the stock spike to about Rs.395 but the stock did not sustain that price. Instead, the stock dropped in price for the rest of the month, closing at about Rs.350. The stock dipped a lot in the second half of June 2017 closing for the month at about Rs.328.
- July 2017 saw the stock recover to some extent. On 12 July 2017, a final 10% dividend was announced. The stock closed for the month at about Rs.368. In August, the stock dropped below Rs.350 again and remained below that price for the rest of the month. The price decreased through the month, closing at about Rs.339. In September 2017, the stock did not recover from the fall in August. The stock went on a steep decrease in the last week of the month. It closed at about Rs.308 by the end of the month.
- The first three weeks of October 2017 did not see much change in the stock price. However, in the last week of the month, the stock experienced a sharp increase in price with the stock reaching about Rs.439 in price. While that price could not be sustained, the stock closed for the end of the month at about Rs.405. November saw the stock reduce in price again but the lowest price in November was in the middle of the month at about Rs.370. The stock then rose but did not breach the Rs.400 mark again and closed for the month at Rs.372. In December, the stock reduced in price and while there were fluctuations, the stock ultimately continued to decline in price, closing for the month at about Rs.360.
Should You Invest In Canara Bank?
Before investing in Canara Bank, the following should be considered:
- It is a state-owned bank.
- It has a network of branches all over India and even in some international centres.
- The bank has shown a steady increase in business over each quarter of the financial year 2017–2018.
- The advances have also shown a similar steady increase over the same time period.
- Total, current, savings, and CASA deposits have all increased from March 2017 to March 2018.
- The total expenses of the bank have reduced from Rs.41,751 crore in March 2016 to Rs.40,028 in March 2017 to Rs.38,647 crore.
- The operating profit has increased from Rs.7,147 crore in March 2016 to Rs.8,914 crore in March 2017 to Rs.9,548 crore in March 2018.
- There is now more focus on digital banking and self-service kiosks.
- The total number of e-transactions has increased from FY17 to FY18.
- Number of branches has increased in order to provide customers with better access to banking solutions. The bank had 6,204 branches as of March 2018.
- There has been a 6% increase year-over-year with respect to the total number of deposit accounts.
- Similarly, there has been a 7.3% increase in the number of borrower accounts from March 2017 to March 2018.
- While these are all indications of possible good performance in the future, it would be better to invest in Canara Bank stocks after adequate personal research based on personal financial commitments and risk appetites and interests.
Canara Bank is a public sector bank headquartered in Bangalore, India. The breakup of the shareholding pattern of the bank as of March 2018 reveals that the Government of India owns about 72.55% of the bank. This bank offers services such as consumer banking, asset management, private banking, credit cards, and investment banking among other services. The bank has a number of subsidiary companies such as, Canfin Homes Limited, Canbank Venture Capital Fund Limited, Canara Robeco Asset Management Company Limited, and so on.
History of the Company
Ammembal Subba Rao Pai established this bank as “Canara Hindu Permanent Fund” in Mangalore in the year 1906. It was incorporated in the year 1910 and during this time, the bank renamed itself to Canara Bank Limited. Beginning in the year 1961, the bank embarked on a number of acquisitions. These acquisitions were mostly of small banks in the Southern part of India. The bank was nationalised by the Government of India in 1969. By the year 1976, the bank had already established 1,000 branches. Eventually, the bank established offices abroad in global financial hubs. The first international branch was opened in London, in the year 1983. After this, the bank continued to open other offices in New York, Hong Kong, and so on in other financial centres around the world.
Management of the Company
Canara Bank is headed by the following individuals:
Shri. Rakesh Sharma - Managing Director and Chief Executive Officer
Smt. P. V. Bharathi - Executive Director
Shri. M. V. Rao - Executive Director
Shri. Suchindra Misra - Director representing the Government of India
Smt. Uma Shankar - Director representing Reserve Bank of India
Shri. Krishnamurthy H - Shareholder Director
Shri. Venkatachalam Ramakrishna Iyer - Shareholder Director
Canara Bank Listings in NSE, BSE, and Other Indices
The codes for the listings are as follows:
BSE - 532483
NSE - CANBKEQ
SECT - Banks
IND - Finance - Banks - Public Sector
ISIN Code - INE476A01014
The company forms a part of indices like the Nifty 200, Nifty 500, S&P BSE 200, and so on.
The bank has its headquarters at:
No.112, JC Road, Bangalore - 560002
Registered Phone number: 080 2222 1581
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