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Business News/ Markets / Stock Markets/  Canara Bank sets May 15 as record date for 1:5 stock split. Details here
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Canara Bank sets May 15 as record date for 1:5 stock split. Details here

Canara Bank has set May 15 as the record date for a stock split to divide one share into five shares with a face value of ₹2 each. The public sector lender's board approved the stock split proposal in February to improve liquidity.

Canara Bank has announced the stock split to improve the liquidity of its shares and make them more accessible to retail investors. (Mint)Premium
Canara Bank has announced the stock split to improve the liquidity of its shares and make them more accessible to retail investors. (Mint)

Canara Bank stock split: Canara Bank, an Indian public sector lender, has fixed May 15, 2024, as the record date for its stock split. The bank's board had earlier cleared the stock split proposal -- to divide one share into five shares with a face value of 2 each. The PSU bank on April 19 announced the record date in an exchange filing. 

In its exchange filing, the lender stated that the purpose of determining the entitlement of equity shareholders is to subdivide or split the bank's existing equity shares. Specifically, one equity share, with a face value of 10 and full payment, will be divided into five equity shares, each with a face value of 2.

To improve the liquidity of the bank's shares and make them more accessible to retail investors, the public sector lender announced in February that its board had approved a stock split.

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

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The Canara Bank share price was trading 0.95 per cent lower at 578 apiece on the BSE. According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, there is no major traction in this counter though it has bounced from lower levels along with broader markets. Today's bounce is from the key support of 50 ema, and 560 may continue to act as the support, whereas 600 is likely to be the resistance. 

Canara Bank's long-term Issuer Default Rating (IDR) of 'BBB-' was affirmed by Fitch Ratings on Tuesday, with the outlook stated to be stable. The Government Support Rating (GSR) of 'BBB-' and the Viability Rating (VR) of 'BB-' for Canara Bank have also been affirmed by the agency. 

Also Read: Infosys shares trade lower after Q4 results 2024. Buy or sell?

The rating agency believes that there is a significant likelihood that Canara Bank will get extraordinary state support if needed, as seen by the bank's Long-Term IDR and GSR, which are on par with India's sovereign rating (BBB-/Stable). The state owns a significant portion of the bank, accounting for 63 per cent of its total assets. Additionally, the agency noted that the state's considerable support for the banking sector is taken into account.

Also Read: Nifty 50, Sensex drop nearly 1% amid escalating tensions in Middle East; Nifty IT index fell 1.74%

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.

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Published: 19 Apr 2024, 01:04 PM IST
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