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Stock Split: This PSU Bank sets record date for division of each share into 5
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Canara Bank had earlier approved the split of each share having face value of ₹10 into five shares having face value of ₹2. This is the first time the lender is undergoing a share split since it got listed on the stock exchanges.
The board of Canara Bank on Friday, April 19, fixed May 15, 2024, as the record date to determine eligible shareholders for the stock split announced by the company in February 2024.
The bank’s board had earlier approved the split of each share having face value of ₹10 into five shares having face value of ₹2. This is the first time Canara Bank is undergoing a share split since it got listed on the stock exchanges.
Canara Bank has not issued a bonus share either in its history. The last major corporate action it has carried out is a rights issue in February 2017.
Last year, the lender had declared a dividend of ₹12, which was the highest payout by the lender in a decade.
Stock splits are done to infuse liquidity and make shares affordable, particularly for retail investors who could not buy the shares of that company before due to high prices.
This subsequently helps in improving the liquidity in the stock.
For the December quarter, a one-off income aided Canara Bank’s net interest income or core income. The lender’s deposits grew at 8.5% year-on-year for the quarter, while advances were up by 11.7%.
The lender’s cost-to-income ratio was the highest in the last 13 quarters.
The Centre owns nearly 63% stake in Canara Bank, while public shareholders own the rest.
Shares of Canara Bank are trading 0.36% lower at ₹581.35 apiece on the NSE. The stock has risen more than 30% so far this year and has gained nearly 100% over the last 12 months.
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