During early trade on February 17, Canara Bank witnessed a gain of nearly 1 percent in its share price. As of 9:37 am, Canara Bank’s shares were trading at Rs 577.30, up by Rs 4.50 or 0.79 percent.
The decision to approve the sub-division/split of each equity share from Rs 10 face value to five equity shares of Rs 2 face value each was announced following a board of directors meeting on February 26, 2024. This move, subject to RBI approval, aims to enhance the bank’s share liquidity and accessibility for retail investors, while expanding its retail investor base. The anticipated completion timeline for this subdivision is two to three months from the date of the board meeting (February 7, 2024), considering the time required for obtaining RBI’s approval.
In addition, the Reserve Bank of India (RBI) levied a monetary penalty of Rs 32.30 lakh on Canara Bank for non-compliance with certain regulations. These violations include failure to rectify rejected data and upload it to Credit Information Companies (CICs) within the specified timeframe, as well as restructuring accounts that were not classified as standard assets as of March 31, 2021.
Earlier in the month, Canara Bank successfully raised Rs 2,000 crore through the issuance of non-convertible, taxable, perpetual, subordinated, fully paid-up, unsecured Basel III compliant Additional Tier 1 bonds, with a face value of Rs 1 crore each, at a coupon rate of 8.40 percent.
According to a research report by Motilal Oswal dated January 24, 2024, the stock received a buy rating with a target price of Rs 570.
Canara Bank reported a significant increase of 26.87 percent in its net profit, reaching Rs 3,656 crore for the October-December quarter of the financial year 2023-24.
