Canara Bank Board Approves 1:5 Stock Split, Check for Details

Canara Bank Board Approves 1:5 Stock Split citing the liquidity in the stock market. Bank’s Board of Directors approved the sub-division of its equity shares of Rs 10 into five shares with a face value of Rs 2 each. The move is aimed at improving liquidity in the bank’s shares and making it more affordable for retail investors along with broadening the retail investors’ base.

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The stock split of its fully paid-up equity shares will be subject to approval for the Reserve Bank of India (RBI). The announcement was made after market hours and the stock ended in red anticipating the same.

The expected time period for the completion of the stock split is 2-3 months. “Expected time of completion is 2 to 3 months from intimation of date of Board Meeting (February 7, 2024) to Stock Exchanges, considering the time taken for receiving RBI’s approval,” said Canara Bank.

The trading window for the Directors, designated persons of the bank and their relatives and all connected persons will reopen on February 29, the filing said.

The share of Canara Bank fell for second straight session today amid significant volumes as over 81 lakh shares changed hands on the NSE at the time of market closing. 

The net interest income of the bank rose by 9.5% to Rs 9,417 crore during the Dec. The gross Non-Performing Assets (NPAs) declined to 4.39% of the gross loans by the end of December 2023 from 5.89% a year ago.

Similarly, net NPAs or bad loans came down to 1.32% from 1.96% at the end of the third quarter of the previous fiscal. 

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