Canara Bank Share Price Up for the 2nd Straight Day; Cuts Long-Term MCLR Effective Mar 12

State-owned Canara Bank Ltd has revised its Marginal Cost of Funds Based Lending Rate (MCLR), effective March 12, 2025, reducing rates by 5-15 basis points (bps) on select tenures. This move aims to enhance affordability for borrowers and stimulate credit growth, particularly for longer-term loans.

Revised MCLR Rates

As per Canara Bank’s regulatory filing:

• Overnight MCLR has been lowered from 8.35% to 8.30%.
• 1-month, 3-month, 6-month, and 1-year MCLR rates remain unchanged at 8.35%, 8.55%, 8.90%, and 9.10%, respectively.
• 2-year MCLR has been reduced from 9.35% to 9.25%.
• 3-year MCLR has been cut from 9.45% to 9.30%.

These reductions, particularly in two-year and three-year loans, are expected to benefit businesses and individuals looking for long-term credit, making borrowing more attractive.

Strong Financial Performance in Q3 FY25

Canara Bank reported a 12% year-on-year increase in net profit, reaching ₹4,104 crore for the third quarter. However, its Net Interest Income (NII) declined 3% YoY, amounting to ₹9,149 crore compared to ₹9,417 crore in the previous financial year.

Share Price Performance

Canara Bank’s share price traded at ₹83.55 at 10:00 AM as of March 12, 2025, reflecting a modest gain of 0.32% (₹0.27) from its previous close of ₹83.28. The stock opened at ₹83.30, touched an intraday high of ₹84.10, and recorded a low of ₹83.30.

Conclusion

Canara Bank’s MCLR rate cuts align with its commitment to enhancing credit accessibility and boosting economic activity.

Coupled with strong financial performance and improving asset quality, the bank continues to reinforce its position as a key player in India’s banking sector. These developments are expected to benefit both borrowers and investors, setting a positive tone for the bank’s future growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.