Government-owned lender Canara Bank has made a big announcement. The Canara Bank board has approved the stock split. The board has today approved the stock split of 1 share of the bank into 5 shares on February 26. Canara Bank said the stock split process may take 2-3 months to complete. Shares of Canara Bank fell 1.5 percent on BSE on Monday to Rs. closed at 571.9. Currently, the face value of Canara Bank shares is Rs.10, which will be Rs.2 after the demerger.
According to information available on the BSE website, Canara Bank’s board of directors approved the stock split in the ratio of 1:5 in its meeting held on February 26. Each Rs.10 face value share of Canara Bank will be divided into 5 equity shares of Rs.2 face value. That is, 1 share of Canara Bank shareholders will be converted into 5 shares.
107 percent return given in one year
Today i.e. February 26, Canara Bank’s share on BSE fell by 1.47 percent to Rs. closed at 571.90. The bank’s shares have returned nearly 20 percent in the last one month. So, its share price has increased by 107.14 percent in the last one year. Currently the market cap of Canara Bank is around Rs 1.04 lakh crore.
In the third quarter of the current financial year, Canara Bank’s net profit increased by 27 percent to Rs. 3,656 crores. Further, net interest income (NII) in the third quarter was ₹ 9,417 crore, up 9.5% over the same period last fiscal.
What is a stock split?
A company divides its shares under a stock split. Generally, when a company’s shares become too expensive, small investors cannot invest in those shares. In such a situation the company splits its shares. The company resorted to stock split to attract small investors and increase demand in the market.
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