Canara Bank Announces Record Date for Stock Split

Public sector bank Canara Bank has announced that May 15 will be the record date for its upcoming stock split. This split will see the division of the bank’s shares in a 1:5 ratio, meaning that one existing equity share with a face value of Rs 10 will be split into five equity shares, each with a face value of Rs 2.

The decision to undergo a stock split was made by the bank’s board with the intention of enhancing the liquidity of Canara Bank shares and making them more accessible to retail investors. Generally, a stock split is viewed as a means to make shares more affordable to retail investors or to potentially increase trading volume.

On April 19, Canara Bank’s shares experienced a decline of 0.7 percent to Rs 579 per share during intraday trading, in contrast to a marginal 0.1 percent increase in the benchmark Nifty 50 index. Year-to-date, the stock of this public lender has shown a robust surge of over 32 percent.

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In a recent development, credit rating agency Fitch Ratings assigned a ‘BBB-‘ rating to Canara Bank with a stable outlook. Fitch observed a resurgence in loan growth for the bank, particularly in the agricultural and corporate sectors. However, Canara Bank has exercised caution in its retail lending activities compared to its peers, maintaining a balanced approach.

According to recent shareholding data, prominent investor Rekha Jhunjhunwala reduced her stake in Canara Bank during the quarter ending in March. Jhunjhunwala decreased her stake in the public lender from 2.1 percent in the quarter ending in December to 1.5 percent in the quarter ending in March.

Foreign institutional investors also reduced their stake in Canara Bank during the March quarter, from 11.2 percent in the quarter ending on December 31, 2023, to 10.57 percent. Additionally, institutional investors decreased their holdings in Canara Bank from 25.5 percent to 24.96 percent.

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Source: moneycontrol.com

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