SEBI Poised for Significant Action Following Warnings on SME IPOs
Canara Bank Board Greenlights 1:5 Stock Split – Know the Details
![Canara Bank Board Greenlights 1:5 Stock Split – Know the Details Canara Bank Board Greenlights 1:5 Stock Split – Know the Details](https://storage.googleapis.com/5paisa-prod-storage/files/2024-02/canara-bank-board-approves-15-stock-split-decision.jpg)
![Tanushree Jaiswal Tanushree Jaiswal](https://storage.googleapis.com/5paisa-prod-storage/files/2023-03/Tanushree.jpg)
Last Updated: 27th February 2024 - 02:46 pm
Canara Bank a prominent Public Sector Unit (PSU) lender has made an announcement aimed at boosting its share liquidity and accessibility for retail investors. The bank's board has greenlit a stock split which will entail dividing each existing share into five shares. This move comes as part of the bank's strategy to make its shares more affordable and enhance market liquidity as detailed in an official exchange filing made on Monday.
The board's approval sets the stage for the upcoming stock split expected to be completed within 2-3 months subject to regulatory approval from the Reserve Bank of India (RBI) for the stock split of fully paid-up equity shares.
Financial Highlights
Canara Bank's latest financial results highlight its robust performance in the October-December quarter. The bank reported a 27% rise in net profit to ₹3,656 crore during this period. In the third quarter, Canara Bank's net interest income (NII) amounted to ₹9,417 crore showing a 9.5% rise from ₹8,600 crore recorded in the same period last fiscal year.
The bank's asset quality is also showing improvement with gross non performing assets (NPAs) dropping to ₹41,722 crore from ₹43,955.6 crore in the previous quarter. Despite a marginal dip in share price closing 1.5% lower at ₹571.90 on Monday, on Tuesday Canara Bank share is trading 0.53% up Canara Bank's stock has witnessed growth surging more than 30% YTD with a remarkable one year return of 108.73%.
Analyst Recommendations and Historical Performance
BofA Securities a leading brokerage firm has maintained a 'buy' rating on Canara Bank's stock and revised its target price upwards to ₹660 per share from the current price over the next 12 months. The bank's historical performance reflects substantial growth with its shares skyrocketing from around ₹80 to ₹580 on the NSE in the last four years delivering an impressive 625% return to shareholders.
Despite the challenges posed by the Covid-19 pandemic Canara Bank has shown remarkable resilience and adaptability. In the past year, the bank's shares have soared from around ₹270 to ₹580 reflecting an impressive 115% surge. In the last six months alone the stock has risen by nearly 76% highlighting investor confidence in the bank's prospects.
Final Words
The board's green light for the stock split is a big deal for Canara Bank. It shows the bank's commitment to adding value for its shareholders and making its shares more accessible in the market.
Trending on 5paisa
Discover more of what matters to you.
Indian Market Related Articles
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.