Canara Bank signs BHEL payroll deal. Elara targets Canara Bank stock at INR 155

Published on 10/25/2026 at 00:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

BHEL's October 23, 2026 payroll pact expands institutional reach. For Canara Bank stock, profit reached INR 51.75 billion, up 8.40 percent.

Operating figures and analyst view

Canara Bank signed a BHEL payroll agreement on October 23, 2026.
Second-quarter net profit reached INR 51.75 billion for fiscal year 2026-27.
Elara Securities set an INR 155 target on October 20, 2026.

Canara Bank, INE476A01014, Illustration mit AI erstellt.

Canara Bank (ISIN INE476A01014) signed a payroll-banking agreement with Bharat Heavy Electricals Limited on October 23, 2026, extending salary-account services to BHEL employees across India, according to Indian Masterminds. The agreement adds an institutional-banking angle after the bank's second-quarter earnings and recent analyst upgrades.

BHEL deal broadens institutional reach

The memorandum covers Canara Bank's Premium Payroll Package and aims to provide tailored banking services to BHEL's workforce. The two public-sector organizations signed the agreement in the presence of senior officials from both sides, linking the initiative to salary-account expansion rather than a quantified lending commitment.

Three milestones shape the story

On October 14, 2026, Canara Bank reported second-quarter net profit of INR 51.75 billion, up 8.40 percent year over year, while net interest income rose 20.39 percent to INR 110.05 billion. The figures come from the bank's investor presentation for the quarter ended September 30, 2026, published on its official website.

On October 20, 2026, Elara Securities rated the stock Buy and set a target of INR 155, citing core operating performance and improving net interest income, according to EquityBulls. On October 23, 2026, Canara Bank signed the BHEL memorandum, the latest dated company event in this article.

What does 1.33 percent gross NPA mean?

The bank's gross non-performing asset ratio stood at 1.33 percent in the September 2026 quarter, down from 1.57 percent in June 2026, while net NPA stood at 0.30 percent. The presentation also reported a provision coverage ratio of 95.34 percent, giving the earnings improvement an asset-quality component.

Guidance points to March 2027

Canara Bank's presentation dated October 14, 2026 frames its outlook against March 31, 2027. It showed September 30, 2026 actuals of 15.88 percent global business growth against full-year guidance of 10 percent to 11 percent, and 19.46 percent advances growth against guidance of 11 percent to 12 percent. The gap places loan growth and margin durability alongside the BHEL relationship as the main monitoring points.

Core income remains the key test

Net interest income growth was stronger than total income growth in the second quarter, when total income reached INR 409.31 billion, up 6.04 percent year over year. At the same time, non-interest income fell 18.17 percent to INR 57.72 billion, showing why future earnings quality depends on core banking income as well as continued asset-quality improvement.