Canara Bank Share Price: UBS initiates coverage with 'buy'; can stock extend 62% rally since March?

Canara Bank Share Price Target 2025: India's state-run banks are back in the spotlight after a stunning turnaround in the current financial year. The Nifty PSU Bank Index has jumped more than 22 per cent in just six months. Private sector banks, by contrast, have managed only a 10 per cent gain over the same stretch, highlighting just how dramatic this shift has been.

Leading the pack are Indian Bank and Canara Bank. Canara Bank has been particularly impressive with 43 per cent of return in just six months. The PSU stock is climbing for six straight trading sessions. On Tuesday, October 7, the stock rose another 1.3 per cent to hit Rs 128.40, marking a fresh one-year peak and bringing it within touching distance of its 14 year high of Rs 129.85.

The bank's shares have surged 62.6 per cent from their March lows, making it the standout performer among government-owned lenders in recent months. Over the past month alone, the stock has gained about 20 per cent.

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Canara Bank Share Price Target 2025

Global investment firm UBS has initiated coverage on Canara Bank with a buy rating and a target price of Rs 150. This is 15 per cent of upside. The brokerage is betting on the bank's stable earnings profile, expecting its return on assets to hold steady at 1 per cent and return on equity at 16 per cent through March 2028.

UBS noted in its report that Canara Bank's loan growth will remain steady while pressure on net interest margins (NIM) should be relatively muted compared to peers. The brokerage also expect credit costs to stay under control.

Q1 Results FY26 Highlights

Canara Bank reported 21.7 per cent jump in net profit for the first quarter of FY26, with earnings climbing to Rs 4,752 crore from Rs 3,905 crore in the same period last year.

The growth came despite net interest income (money earned from lending activities) slipping 1.7 per cent. What made the difference was a sharp 32.7 per cent surge in other income to Rs 7,060.48 crore.