Canara Bank vs Union Bank of India: Which Stock Should You Track
- August 6, 2026
- Posted by: Ankit Jaiswal
- Category: News
Canara Bank MCap Rs 1,15,878 Cr, PE 5.84x, ROE 16.94%, PB 0.99. Union Bank of India MCap Rs 1,32,710 Cr, PE 6.43x, ROE 15.57%, PB 1.00.
Canara Bank vs Union Bank of India is a comparison PSU bank investors look up when evaluating two mid-large government-owned banks at near-identical valuations. Canara Bank is headquartered in Bengaluru and absorbed Syndicate Bank in 2020, making it India’s third largest PSU bank. Union Bank of India is headquartered in Mumbai and absorbed Andhra Bank and Corporation Bank in 2020.
This Canara Bank vs Union Bank of India article covers reach and market position, key products, latest declared results and stock valuation. The Canara Bank vs Union Bank of India data below is sourced from Groww and public company filings and reflects the most recently available information at the time of writing.
Canara Bank vs Union Bank of India: Reach and Market Position
On the Canara Bank side of the Canara Bank vs Union Bank of India comparison, Canara Bank operates over 9,500 branches across India, with a strong South India and Karnataka presence, serving retail, agri, MSME and corporate borrowers. Market capitalisation is Rs 1,15,878 Cr.
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On the Union Bank of India side of the Canara Bank vs Union Bank of India comparison, Union Bank of India operates over 8,700 branches across India with a Maharashtra and West India anchor, having absorbed Andhra Bank and Corporation Bank. Market capitalisation is Rs 1,32,710 Cr.
Canara Bank vs Union Bank of India: Key Products and Business Mix
In the Canara Bank vs Union Bank of India product comparison, Canara Bank offers: Canara Bank offers retail loans, agri and MSME credit, corporate banking and government schemes. P/E is 5.84x, ROE 16.94 percent, P/B 0.99. Dividend yield is 3.29 percent.
For Union Bank of India in this Canara Bank vs Union Bank of India breakdown: Union Bank of India offers retail loans, MSME and agri credit, corporate banking and transaction banking services. P/E is 6.43x, ROE 15.57 percent, P/B 1.00. Dividend yield is 2.88 percent.
Canara Bank vs Union Bank of India: Latest Results
The Canara Bank vs Union Bank of India results for Canara Bank: Canara Bank has a market cap of Rs 1,15,878 Cr and P/E of 5.84x — one of the cheapest among large PSU banks. ROE is 16.94 percent. P/B is 0.99 at near book.
The Canara Bank vs Union Bank of India results for Union Bank of India: Union Bank of India has a market cap of Rs 1,32,710 Cr and P/E of 6.43x. ROE is 15.57 percent. P/B is 1.00 at book value. Dividend yield is 2.88 percent.
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Canara Bank vs Union Bank of India: Stock and Valuation
The Canara Bank vs Union Bank of India stock comparison uses the latest available market data from Groww. Investors tracking Canara Bank vs Union Bank of India should verify current prices on NSE or BSE before trading.
Canara Bank trades at a market cap of Rs 1,15,878 Cr and P/E of 5.84x — slightly cheaper than Union Bank — with a higher ROE of 16.94 percent. Union Bank trades at Rs 1,32,710 Cr market cap and P/E of 6.43x at book value. Both PSU banks are similarly valued with near-identical ROEs.
Canara Bank vs Union Bank of India: Quick Comparison Table
The Canara Bank vs Union Bank of India comparison table below summarises the key metrics covered in this article side by side.
| Parameter | Canara Bank | Union Bank of India |
|---|---|---|
| Sector | PSU bank | PSU bank |
| Market Cap | Rs 1,15,878 Cr | Rs 1,32,710 Cr |
| P/E Ratio | 5.84x | 6.43x |
| ROE | 16.94% | 15.57% |
| P/B Ratio | 0.99 | 1.00 |
| Dividend Yield | 3.29% | 2.88% |
| Merged entities | Syndicate Bank (2020) | Andhra Bank and Corporation Bank (2020) |
| Headquarters | Bengaluru (South India anchor) | Mumbai (West India anchor) |
Conclusion
The Canara Bank vs Union Bank of India comparison above covers the key data points on reach, products, results and valuation. Canara Bank vs Union Bank of India are both mid-large PSU banks at near book value with similar ROE profiles. Canara Bank is slightly cheaper with a marginally higher ROE. Both pay solid dividends. Investors should review NIM, credit cost and loan growth trends and consult a SEBI-registered advisor before investing.
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Disclaimer: Data and figures in this article are sourced from publicly available information, including company results filings and exchange data, and are current as of the time of writing. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What is the main difference between Canara Bank and Union Bank?
Ans. Canara Bank is headquartered in Bengaluru and absorbed Syndicate Bank, with a strong South India presence. Union Bank of India is headquartered in Mumbai and absorbed Andhra Bank and Corporation Bank, with a Maharashtra anchor.
Which stock trades at a lower P/E?
Ans. Canara Bank trades at 5.84x trailing earnings, slightly cheaper than Union Bank at 6.43x.
Which bank has the higher ROE?
Ans. Canara Bank has an ROE of 16.94 percent, slightly higher than Union Bank at 15.57 percent.
Which bank pays a higher dividend?
Ans. Canara Bank pays a dividend yield of 3.29 percent, higher than Union Bank at 2.88 percent.
Do both banks trade near book value?
Ans. Yes. Canara Bank trades at P/B of 0.99 and Union Bank at P/B of 1.00 — both essentially at book value.
What risks apply to these PSU banks?
Ans. Both face risk from government-directed lending leading to NPA cycles, NIM compression in competitive deposit markets and any macro slowdown affecting SME and agri borrowers.
Should I invest in Canara Bank or Union Bank?
Ans. Both are near-identical in valuation. Canara Bank is slightly cheaper with a higher ROE. Consult a SEBI-registered advisor before investing.
