What's Driving Canara Bank's Stock Surge? SEBI Analyst Tracks Breakout Signals

Canara Bank's shares have drawn attention after touching a 52-week high of ₹121.9 on Wednesday, supported by steady fundamentals and strong investor interest.

Canara Bank's recent price surge was driven by its plan to sell part of its stake in Canara Robeco AMC's IPO, potentially unlocking shareholder value. It has gained 12% in the last month.

Technical View

SEBI-registered analyst Deepak Pal said that the stock is exhibiting a breakout on the charts, with a neutral-to-slightly bullish phase on the daily timeframe. 

He noted the Relative Strength Index is at 49, showing moderate strength without extremes. Short-term moving averages, such as MA5, MA10, and MA20, are mixed, while longer-term averages, MA100 and MA200, act as resistance near ₹112. 

Immediate support is seen at ₹110, with resistance at ₹111.5–112. According to him, the indicators suggest range-bound trading with high volatility in the short term.

Fundamental View

Pal highlighted that as of June, Canara Bank's net interest income grew 1.4% year-over-year, operating profit before provisions increased by 7%, and profit after tax rose by 14.8%. 

Net interest margin remained steady at 2.6%, return on equity improved to 16.6%, and the gross NPA ratio declined to 2.9% from 4.2%. The Capital Adequacy Ratio was strong at 16.52%, with CET1 at 12.29%.

Strategic Focus

On the micro front, Pal said the bank is focusing on retail deposit mobilization and has set credit growth targets of 10–11% for FY26. He also highlighted the tie-ups with fintechs and government-led digital banking initiatives to provide an impetus to financial inclusion. 

On the macroeconomic front, he further stated that monetary easing, reviving consumption, and a stable regulatory environment provide a conducive setting for public sector banks. A pick-up in economic growth should benefit credit growth as well as asset quality.

Pal also noted that the bank's digital transformation and financial inclusion efforts are gaining traction, along with the ongoing recruitment drive, which signals growth in manpower.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'neutral' amid 'high' message volume.

Canara Bank's stock has risen 21.6% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

MENAFN25092025007385015968ID1110108846