Shares of Canara Bank Ltd. rose nearly 2 percent in early trade on Wednesday, November 23, after the lender received approval to open a special "vostro account" for trade in rupees with Russia.
According to a Business Standard report citing sources, the Reserve Bank of India (RBI) has given nod to HDFC Bank and Canara Bank to open a special "vostro account" for trade in rupees with Russia.
The stock opened at Rs. 320.50 per share against the previous close of Rs. 318.70 and rallied to record a new 52-week high of Rs. 325.
The stock had touched its 52-week low of Rs. 171.75 on June 20, 2022.
Canara Bank has given almost 70 percent returns to its shareholders in the last six months. It has shown a growth of over 57 percent year-to-date. However, in the past five years, the company's shares have declined by nearly 18 percent.
Indian trade secretary Sunil Barthwal earlier this month said the country has given nine banks approval to open "vostro" accounts to help facilitate trade in rupees with Russia.
In other developments, Ashok Chandra took charge as the executive director of Canara Bank on November 21, 2022.
Indian brokerage house Emkay Global has a ‘buy’ call on Canara Bank with a target price of ₹330, reported ET.
Vaishali Parekh, Vice President - Technical Research of Prabhudas Lilladher, included the bank in the top three technical picks with the investment horizon of 60 days. “With the chart looking attractive, and with upside potential visible, we suggest to buy and accumulate this stock for a positional target of ₹353 levels keeping the stop loss of ₹303 level,” she said.
Founded in 1906, Canara Bank has a market capitalization of ₹58569.20 crore. The bank's segments include treasury operations, retail banking operations, wholesale banking operations, life insurance operation and other banking operations. Its retail lending operations include education loans, vehicle loans, housing loans and other personal loans. It has approximately 10,416 branches across the country.
According to a Mintgenie poll, 13 analysts on average have a ‘BUY’ call on the stock.