Canara Bank shares surged 4.6% to the day’s high of Rs 118.40 on BSE in Wednesday’s trade as the board’s decision to split the stock in 1:5 ratio came into effect today.
For each share equivalent to a face value of Rs 10, the investors were to receive 5 shares of face value of Rs 2 per share.
The board of Canara bank had approved the sub-division of its equity shares earlier this year stating that the move is aimed at improving liquidity in the bank’s shares and making it more affordable for retail investors along with broadening the retail investors’ base.
The PSU lender had posted an 18% growth in its standalone net profit at Rs 3,757 crore for the quarter ended March 2024 as against Rs 3,174 crore posted in the same period last year period.
The company’s Board has also recommended a dividend of Rs 16.10 per share, 161% of face value each, for the financial year 2023-24.
As per the latest shareholding pattern, the Government of India holds a 63% stake in the bank while the remaining 37% is in the public’s hand.
Canara Bank stock has given 92% returns to the investors in the last one year and 33% gains in the current calendar year.
On technical charts, the stock is currently under all its exponential moving averages and hovering near the 43 mark on RSI as per Trendlyne.
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