Shares of Canara Bank rose nearly 3% in early trade on Monday, April 22, hitting ₹101.65, up ₹2.65 or 2.68% from its previous close of ₹99.00. The stock is inching closer to its 52-week high of ₹128.90 amid supportive regulatory developments from the Reserve Bank of India (RBI).
The rally comes after the RBI released the final rules on the Liquidity Coverage Ratio (LCR) framework, which were perceived as less stringent than the July 2024 draft. The central bank has halved the additional run-off rate for retail and small business IMB-enabled deposits from 5% (proposed) to 2.5%, providing significant relief to banks.
Stable retail deposits enabled via internet and mobile banking will now attract a 7.5% run-off factor, while less stable ones will face a 12.5% rate — up from the current 5% and 10%, but much lower than the earlier proposed 10% and 15%.
ICRA noted that the modified norms could free up ₹2.7-3.0 lakh crore in HQLAs, providing additional credit growth potential of 1.4-1.5% for the banking system. The RBI also postponed the implementation of the revised norms to April 2026, allowing banks more time to adjust.
With a market cap of ₹921.58 billion and a P/E ratio of 5.61, Canara Bank is one of the most active PSU bank stocks today, benefiting from improved investor sentiment.
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