Axis Capital on Canara Bank
Rating: Maintain Reduce
Target Price: ₹110
🔍 Key Highlights:
NIM Pressure: Net Interest Margin (NIM) likely to remain under pressure in FY26E, limiting earnings momentum.
CASA Ratio: Declined, indicating increased cost of funds.
Loan Growth: Driven by retail and MSME segments, while corporate book remains stable.
Fee Income: Stable, offering some cushion to overall revenues.
Valuation Risk: Continued decay in NIM and Return on Assets (ROA) may prevent meaningful re-rating.
Rating: Maintain Reduce
Target Price: ₹110
🔍 Key Highlights:
NIM Pressure: Net Interest Margin (NIM) likely to remain under pressure in FY26E, limiting earnings momentum.
CASA Ratio: Declined, indicating increased cost of funds.
Loan Growth: Driven by retail and MSME segments, while corporate book remains stable.
Fee Income: Stable, offering some cushion to overall revenues.
Valuation Risk: Continued decay in NIM and Return on Assets (ROA) may prevent meaningful re-rating.
