Canara Bank Moat Analysis: Score & Risks
Canara Bank
A first-pass moat teardown of Canara Bank, built from single-pass filing evidence. Free note — provisional, and the full two-pass deep dive may revise it.
First-pass narrow read — primary edge in Switching Costs. Provisional, single-pass evidence.
Canara Bank scores 4.54 on MoatSCORE 6.0 — a narrow moat in Banks. This is a first-pass note: the dimensional read and the filing receipts below come from a single GFIP evidence pass, not the full two-pass deep corpus behind our flagship deep dives. Provisional — published free while the deep version is queued.
Seven dimensions of moat
Ordered by contribution. Each dimension carries a verified filing quote, graded [M] mechanism or [O] outcome.
“we always keep our cost of funds into mind because when compared to all other banks, our CASA is low. So our cost of funds will be little higher than the peer banks.”
“we have easily surpassed and comfortably surpassed 11 parameters, except CASA and NIM, which is industry challenge.”
“the entire portfolio that is affected is about 90,000 crores. And the additional exposure will be around 18,000 to 20,000 crores. Definitely, it will give some flip to the advances.”
“10,066 branches, we are getting substantial benefit out of these two subsidiaries by cross-selling in a large scale.”
“Add: Fresh provisions made during the year 9586 Less: Excess provision reversed/ Write-off loans 14178”
“Rating strengths are partially offset by relatively low current account and savings accounts (CASA) ratio of Canara Bank than its peers.”
D8 rating: ADEQUATE. Not part of the moat score — it governs the cost of equity and the fade window. First-pass; not yet deep-reviewed.
The barrier gate — first-pass
Effective barrier 5.5 — below 6, so the band is capped narrow. First-pass estimate.
Deep two-pass review. This draft rests on a single GFIP evidence pass; the full 10-year AR + concall corpus may move the read.
The barrier gate. A firmer replication or bypass estimate is the most likely thing to shift the band.
Adverse events. Any governance, regulatory or funding shock captured in D8 could re-rate the fade window.
Where this note fits. This company is one of 113 Indian companies we have scored for moat durability — 88 narrow, 25 narrow-trending-wide, none wide. The full ranked read: Wide-Moat Stocks in India: We Scored 113 Companies and Found None. Every score, dimension by dimension, is free in the Moat Screener.
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