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

by Tanushree Jaiswal Last Updated: Feb 27, 2024 - 02:46 pm 1.8k Views
Listen icon

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.

Share Market Today

How do you rate this article?

Start Investing in 5 mins*

Rs. 20 Flat Per Order | 0% Brokerage


About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
Enjoy 0%* Brokerage with 5paisa
Resend OTP
Please Enter OTP
Mobile No. belongs to

By proceeding, you agree to the T&C.

Latest News
TCS Impresses with Record Wins: Analysts Bullish on Double-Digit Growth

Despite all of the positives from the March quarter, TCS' management looked to be holding back on calling for a growth recovery, according to UBS. Given the unclear macroeconomic, the brokerage appears to be concerned about the danger of transaction deferments and slippages.

Sensex, Nifty down 1% on Iran-Israel tensions; consolidation to continue

Title: Sensex, Nifty slip 1% over Iran-Israel conflict worries; consolidation to continue Sensex, Nifty slip 1% over Iran-Israel conflict worries; consolidation to continue

Senco Gold Share Price surges nearly 10% on strong Q4 performance, nearing 52-week high

Senco Gold's stock increased more than 4% on April 15 after the firm announced 28% revenue growth for FY24 and 39% year-on-year growth for the March 2024 quarter in its business update.