India, Oct. 15 -- Banks make their money on a simple promise: take in deposits, lend them out wisely, and keep the bad loans low. After years of cleaning up, Indian lenders have mostly delivered on that, and public sector banks in particular have enjoyed a strong run. But investors never stop looking ahead, and the next big test is no longer about old bad loans. It is about how much banks must set aside today for loans that might go wrong tomorrow.

The Nifty 50 traded at 22.950.85, up 1.45%, while the Sensex rose 1.56% to 73,920.53 on Wednesday. Meanwhile, Shares of Canara Bankwere trading at Rs. 118.3, down 5.15% from previous close of Rs. 124.76. The stock opened at Rs. 123.70 and reached an intraday high of Rs. 123.84 and low of Rs. ...