Canara Bank board: The board has approved a stock split that will divide each share into five shares, increasing the bank’s liquidity and making its shares more accessible to retail investors, Public Sector Unit (PSU) lender Canara Bank said in an exchange filing on Monday.
Canara Bank stated that the stock split completion is anticipated within 2 to 3 months from the notification of the Board Meeting date (February 7, 2024) to Stock Exchanges, factoring in the duration required for obtaining RBI approval.
The Reserve Bank of India (RBI) must give its approval before the stock split of its fully paid-up equity shares can occur. On the NSE, the Canara Bank stock finished the day one percent lower at ₹571.90.
The filing states that the Directors, the bank’s designated individuals, their families, and all related parties will be able to trade again on February 29.
The state-owned Canara Bank reported strong financial results last month, with net income for the quarter ending in December 2023 rising by almost 27% to ₹3,659 crore.
Increased interest income and lower credit costs drove this growth. With net interest income rising by 9.50 percent to ₹9,417 crore, the bank with its headquarters in Bengaluru exceeded forecasts. Additionally, there was a notable decrease in the credit cost, which fell by 24 basis points (bps) to an excellent 0.97.
The bank saw a significant increase in net interest income during the quarter, rising by 9.5% to ₹9,417 crore.
The bank noted that, in terms of asset quality, there has been progress. By the end of December 2023, its gross non-performing assets (NPAs) had dropped from 5.89% of gross loans to 4.39%. Parallel to this, the percentage of net non-performing assets, or bad loans, decreased from 1.96% at the end of the third quarter of the previous fiscal year to 1.32%.
