Public sector lender Canara Bank on Monday said its board approved the split of each share into five shares.
In an exchange filing, Canara Bank said the move is aimed "to improve the liquidity of the Bank’s share and to make it affordable for retail investors and also to broaden the retail investors base".
The expected time of completion for the stock split is 2–3 months, the public sector lender added. The Centre owns nearly 63% stake in Canara Bank, while public shareholders own the rest.
Canara Bank reported on January 24 a 27% rise in net profit to ₹3,656 crore for the October-December quarter. The net profit beat a CNBC-TV18 poll estimate of ₹3,451 crore. The net interest income (NII) for Q3 stood at ₹9,417 crore, indicating a 9.5% increase from the same period in the previous financial year, where it was ₹8,600 crore.
The lender's asset quality showed positive trends, with gross non-performing assets (NPA) at ₹41,722 crore, a decrease from ₹43,955.6 crore in the previous quarter.
The Canara Bank share price settled 1.5% lower at ₹571.90 on Monday. The PSB stock has surged more than 29% this year so far, while the one-year return on the stock is 107%.
Brokerage firm BofA Securities last week retained its 'buy' rating on Canara Bank and raised the target price on the stock to ₹660 per share from ₹540 earlier, reflecting a potential upside of about 3% from the current price in the next 12 months.
First Published: Feb 26, 2024 5:18 PM IST
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