Motilal Oswal Financial Services (MOSL) has maintained a ‘Buy’ rating on Canara Bank, revising its target price upward to ₹135 from ₹120, implying a potential upside of 18.5% from the current market price of ₹113.88.
The brokerage expects the bank’s net interest margins (NIMs) to recover to 2.75–2.8% by the second half of FY26, supported by lower funding costs. The overall outlook has improved, prompting MOSL to revise its earnings estimates higher by 11–13%.
Analysts highlighted better other income performance and reduced provisions as key drivers behind the earnings upgrade. Looking ahead, Canara Bank is projected to deliver a Return on Assets (RoA) of 1.1% and Return on Equity (RoE) of 19% by FY27, signalling robust profitability metrics.
Disclaimer: The above article is based on brokerage views and publicly available data. It is not a recommendation to buy or sell any stock. Investors should consult their financial advisor before taking any investment decisions.
