Record Date Set For Rs 4 Dividend, Q4 FY25 Marks Consistent Turnaround; Buy Rekha Jhunjhunwala Owned Stock?

Canara Bank's stock concluded Thursday's trading session on the NSE 1.56% higher at Rs 95.13 a share. The stock saw a 4.80% advance during the day, reaching an intraday high of Rs 98.17 from the previous close of Rs 93.67. After acquiring her late husband Rakesh Jhunjhunwala's wealth, Rekha Jhunjhunwala's portfolio stock brought up her ownership share in Canara Bank from 1.42% in December 2024 to 1.46% in March 2025. She owned 13,24,43,000 bank shares as of March 31, 2025. Today's focus will be on the stock following Canara Bank's strong Q4 and FY25 results announcement on Thursday.

Canara Bank Dividend

"This is to inform that the Board of Directors of the Bank at their meeting dated 08.05.2025 has recommended dividend of 200% on the equity shares of the Bank i.e Rs. 4/- per share having face value of Rs. 2/- each for the Financial Year 2024-25. Accordingly, we wish to inform you that the Record Date for determining the eligibility of members entitled to receive dividend on equity shares is Friday, 13th June, 2025. Dividend, if approved by the shareholders of the Bank, shall be paid after the AGM to those shareholders, whose names appear in the Bank's Register of Members/ Register of Beneficial Owners maintained by the Depositories viz., National Securities Depository Limited and Central Depository Services (India) Limited as at the close of business hours on Friday, 13th June, 2025," said Canara Bank in a stock exchange filing on Thursday.

The bank's 23rd Annual General Meeting (AGM) is set for Thursday, June 26, 2025.

"Record Date for payment of Dividend will be Friday, 13th June, 2025. The payment of dividend is subject to the approval of Shareholders at the ensuing Annual General Meeting of the Bank," informed Canara Bank to the stock exchanges.

Canara Bank Q4FY25 Results

The bank made a net profit of Rs 5002.66 Cr in Q4FY25, up 33.15% YoY from Rs 3,757.23 Cr in Q4FY24. In the quarter under review, the bank's net income was Rs 37,352.80 Cr, up 9.78% YoY from Rs 34,025.18 Cr in the same quarter last year. The bank's net interest income decreased from Rs 9,580 crore in Q4FY24 to Rs 9,442 crore in Q4FY25, a 1.44 per cent YoY dip.

The quarter's net interest margin decreased 25 basis points YoY to 2.80% from 3.05%. The bank's total interest income for the quarter was Rs 31,002.04 crore, which was 7.62% YoY higher than Rs 28,807.35 crore in the year-ago quarter. In Q4FY25, total provision was Rs 3,280 crore, a 9.64% YoY drop from Rs 3,630 crore. The provision coverage ratio (PCR) of Canara Bank jumped from 89.10 per cent YoY to 92.70 per cent in Q4FY25.

At Rs 31,530 crore, the bank's gross non-performing assets (GNPA) accounted for 3% of its total advances. With reported Net Non-Performing Assets (NNPA) of Rs 7,353 crore, the Net NPA ratio was 0.70 per cent. The bank reports that its gross advances rose 11.74% to Rs 10,73,332 Cr, while its operating profit rose 12.14% to Rs 8,284 Cr. Canara Bank reported a 16.98% rise in earnings per share as of March 31, 2025.

The gross non-performing assets (GNPA) ratio of Canara Bank was 2.94% as of March 2025, compared to 3.34% in December 2024 and 4.23% in March 2024 whereas the bank's net non-performing assets (NNPA) ratio dropped to 0.70% in March 2025 from 1.27% in March 2024 and 0.89% in December 2024, suggesting a highly positive sign of the bank's strengthening financial health and asset quality.

On May 8, K. Satyanarayana Raju, the managing director and CEO of Canara Bank, stated in a press met that the bank may see pressure on its net interest margins (NIM) in the fiscal year 2025-2026 as a result of the Reserve Bank of India's prolonged expectations for rate cuts. The NIM's guidance for the fiscal year 2025-2026 is 2.75-2.80%, according to the bank.

Canara Bank Share Price Target

"Canara Bank is in a strong uptrend, consistently making higher lows. The stock has support at ₹92 and resistance near ₹99-100. If it breaks ₹100 with volume, it could quickly move toward ₹105-108. RSI is around 63, indicating growing momentum. Price action and volume both support the ongoing bullish trend. Traders can consider buying on dips or above ₹100 with a stop loss below ₹92 for near-term targets. Overall outlook remains positive," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.