Sell Canara Bank with a target of Rs 205: Deutsche Bank

Deutsche Bank has sell call on Canara Bank with a target price of Rs 205 . The current market price of Canara Bank is Rs 295 . Time period given by analyst is a year when Canara Bank price can reach the defined target. The asset quality remained stable in the September quarter but slippages remain elevated. The management expects slippages to decline in coming quarters; expect sub 9% Gross NPA. The low RoEs will keep valuations depressed for Canara Bank. But, RoE improvement will be the key for re-rating, said the global investment bank which could only come from growth or strong recoveries.