Canara Bank slips 4% as Morgan Stanley maintains underweight

The company reported a 17 percent year-on-year growth in June quarter profit at Rs 329.1 crore from Rs 281.5 crore in same period last fiscal.

Share price of Canara Bank shed 4 percent intraday on July 25 as research house Morgan Stanley remained underweight on stock with a target of Rs 220 per share.

The company reported weaker PPoP and asset quality in Q1FY20, while company's Q1FY20 PAT is Rs 300 crore against estimate of Rs 600 crore, said Morgan Stanley.

Lower margins and sequential rise in slippages are the key negatives, while higher fees and lower than expected other operating expenses are the key positives.

The company reported a 17 percent year-on-year growth in June quarter profit at Rs 329.1 crore from Rs 281.5 crore in same period last fiscal.

However, net interest income in June quarter fell 16.6 percent to Rs 3,240.1 crore year-on-year but loan growth was 12 percent at Rs 4.32 lakh crore YoY while deposits grew 14.5 percent to Rs 6.1 lakh crore YoY.

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