Mumbai: The City Union Bank is going to split its equity shares, having a face value of Rs10 each to ten shares of Re 1, subject to RBI’s approval.
The lender informed the BSE that its Board of Directors has resolved to split the capital of the company wherein the existing capital of Rs100 crore divided into 10 crore equity shares of Rs10 each would be split into 100 crore shares of Re1 each.
The proposed stock-split exercise, however, is subject to approval from Reserve Bank of India, it added. A stock split is a type of corporate action that replaces shares in a public company with more shares at a lower price. The increased number of shares leads to greater liquidity in the market.
Meanwhile, City Union Bank’s Board will be meeting on 21 May to consider its financial results and recommend dividend for the financial year 2006-2007, if any.