Canara Bank sets May 15 as record date for 1:5 stock split, shares rise 32% so far in 2024

Public sector lender Canara Bank has set May 15 as the record date for its stock split. The lender's shares will be divided in a 1:5 ratio, through which one equity share with a face value of Rs 10 will be divided into five equity shares, each with a face value of Rs 2.

The board approved the stock split proposal to improve liquidity of Canara Bank shares and make them more accessible for retail investors. Typically, a stock split is considered to increase the stock's affordability to retail investors or increase trading volume.

Shares of Canara Bank was down 0.7 percent to Rs 579 per share intraday on April 19, as against a 0.1 percent rise in the benchmark Nifty 50 index. So far this year, the stock of this public lender has surged over 32 percent.

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Earlier, credit rating agency Fitch Ratings assigned 'BBB -' for Canara Bank and said that the outlook is stable. Fitch noted that a resurgence in loan growth, particularly in farm and corporate sectors, however, the lender exercised some caution in retail lending compared to peers, maintaining a balanced approach.

According to shareholding data, Rekha Jhunjhunwala pared stake in the public lender in the March-ended quarter. Jhunjhunwala reduced her stake in Canara Bank to 1.5 percent in the March-ended quarter from 2.1 percent in the December-ended quarter.

Foreign institutional investors have also trimmed their stake to 10.57 percent in the March quarter from 11.2 percent in the three months to December 31, 2023. Institutional investors have decreased their holdings in Canara Bank to 24.96 percent from 25.5 percent.

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