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Canara Bank Nears 14-Year High as Subsidiary IPO Boosts Stock
7 Oct
Summary
- Canara Bank stock up 61.5% since March, 27% YTD
- Possible FPI limit hike and subsidiary IPO fuel rally
- Stock has delivered 5 consecutive years of positive returns
As of October 8, 2025, Canara Bank's shares have continued their impressive rally, climbing 1.3% to ₹128.40, just steps away from a 14-year high of ₹129.85. The state-owned lender's stock has gained 61.5% since March and 27% year-to-date, making it the best performer among public sector bank stocks in the recent market rally.
The sustained bull run has pushed Canara Bank's shares to deliver positive returns for the fifth consecutive year. In 2022, the stock has achieved a remarkable 66% rally, followed by a 55% gain in 2021. The recent surge in the share price is supported by several positive developments, including reports of a possible increase in the FPI (Foreign Portfolio Investor) limit for PSU banks and hopes of a pickup in credit demand, aided by the GST rate cut.
Additionally, the upcoming IPO of Canara Bank's subsidiary, Canara Robeco Asset Management Company, has also fueled investor interest. Canara Robeco, a joint venture between Canara Bank and ORIX Corporation Europe, a unit of Japan's ORIX Corporation, will open its initial public offering to retail investors on October 9, with anchor investors invited to place their bids on October 8. The firm, which manages more than ₹1 trillion in assets, is not issuing any fresh shares in the IPO, with the two existing shareholders offloading a combined 49.8 million shares.
