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Business News/ Markets / Stock Markets/  Canara Bank board approves 1:5 stock split to improve liquidity; Details here

Canara Bank board approves 1:5 stock split to improve liquidity; Details here

Canara Bank board approves stock split into five shares to improve liquidity.

Canara Bank stock split Photo: Pradeep Gaur/MintPremium
Canara Bank stock split Photo: Pradeep Gaur/Mint

Public Sector Unit (PSU) lender Canara Bank said on Monday that the board has given its approval a stock split, dividing each share into five shares to enhance the liquidity of the bank's shares and make them more accessible for retail investors, the company said in an exchange filing.

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.

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Approval from the Reserve Bank of India (RBI) is required for the stock split of its fully paid-up equity shares. The Canara Bank stock closed a percent lower today at 571.90 on the NSE.

According to the filing, the trading window will reopen on February 29 for the Directors, designated individuals of the bank, their relatives, and all associated parties.

In the previous month, Canara Bank, a state-owned institution, announced robust financial results, with nearly 27 percent surge in net income to 3,659 crore during the quarter ending December 2023. 

This growth was propelled by reduced credit costs and increased interest income. The Bengaluru-headquartered bank surpassed expectations, with net interest income registering a significant rise of 9.50 percent to reach 9,417 crore. Moreover, the credit cost demonstrated a remarkable decline, plummeting by 24 basis points (bps) to a commendable 0.97.

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During the quarter, the bank witnessed a notable increase in net interest income, which surged by 9.5% to reach 9,417 crore.

Regarding asset quality, the bank reported an improvement, noting that its gross Non-Performing Assets (NPAs) decreased to 4.39% of the gross loans by the conclusion of December 2023, down from 5.89% recorded a year earlier. Similarly, the net NPAs, or bad loans, saw a decline to 1.32% from 1.96% reported at the end of the third quarter of the previous fiscal year.

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Published: 26 Feb 2024, 07:14 PM IST
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