Company Update : Canara Bank by Motilal Oswal Financial Services Ltd
Robust business growth; CD ratio increases by ~130bps QoQ
* Total Business of the bank grew 14.4% YoY/ 3.55% QoQ to INR29.05t.
* Global advances grew by 17.96% YoY/ 4.5% QoQ to INR12.93t (largely inline to our estimate of loan growth of 16.55% YoY/ 2.6% QoQ). Growth was led by healthy traction in RAM segment which grew by 21.27% YoY/ 4.73% QoQ to INR7.65t.
* Global deposits grew 11.69% YoY/ 2.8% QoQ to INR16.13t (marginally beat to our estimate of 9.3% YoY/ 2.3% QoQ), led by higher growth in Overseas deposits which increased by 32.4% YoY/5.6% QoQ whereas Domestic deposits grew at 10.1% YoY/ 2.54% QoQ to INR14.73t.
* Overall business growth beat our expectations, while advances growth was largely driven by RAM advances. As a result, calculated CD ratio (on gross advances) increased to 80.2% vs 78.9% in 4QFY26.
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