Stocks

Canara Bank shares fall on higher bad loans provision

Reuters Mumbai | Updated on January 11, 2018

State-run lender Canara Bank Ltd today fell as much as 6 per cent to Rs 348.95, in its biggest intraday percentage drop since December 26, 2016.

At about 12.15 pm, the stock was trading down 4.58 per cent or Rs 17.35 at Rs 353.65 on the BSE.

The bank posted lower-than-expected Q1 profit on Wednesday due to higher provisioning for bad loans.

Provisioning rose about 48 per cent on year to Rs 2,204 crore in the first quarter.

Brokerage firm Motilal Oswal Securities has cut target price to Rs 360 due to prolonged provisioning pressure and maintained "Neutral” rating.

Around 5 million shares changed hands, more than double the 30-day moving average.

Published on July 20, 2017

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