Canara Bank shares in focus today as board approves stock split

Shares of Canara Bank are in focus today after board of the lender approved the sub-division of its equity shares of Rs 10 into five shares with a face value of Rs 2 each. The announcement was made after market hours on Monday.

The stock split, in the ratio of 1:5, is aimed at improving liquidity in the bank’s shares and making it more affordable for retail investors.

In the previous session, the stock ended 1.24% lower at Rs 572.80 on BSE. Market cap of Canara Bank stood at Rs 1.03 lakh crore. Total 3.92 lakh shares changed hands amounting to a turnover of Rs 22.56 crore. 

Canara Bank shares have gained 29.31 per cent since the beginning of this year and risen 111.33 per cent in one year. The banking stock hit a 52-week low of Rs 268.85 on February 24, 2023 and a 52 week high of Rs 598.75 on February 23, 2024. Canara Bank has a one-year beta of 0.5, indicating very low volatility during the period.    

In terms of technicals, the relative strength index (RSI) of the Canara Bank stock stands at 65.8, signaling the stock is trading neither in the oversold nor overbought zone.  

The stock split of fully paid-up equity shares will be subject to the approval of the Reserve Bank of India (RBI). The state-run lender expects to complete the stock split within 2-3 months from intimation of date of Board meeting on February 7, 2024 to the stock exchanges.

“This is to inform the Stock Exchanges that the Board of Directors of the Bank at its meeting held today, i.e Monday, 26th February 2024, inter alia, approved Sub-division/ split of every one equity share of face value of Rs. 10/- (Rupees ten only) each, fully paid-up, into 5 (five) equity shares of face value of Rs. 2 /- (Rupee two only) each, fully paid-up, subject to approval of the Reserve Bank of India,” said  the lender in a communication to bourses.

 

 

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