Canara Bank board to consider stock split on February 26

Canara Bank shares will be in focus on Wednesday after the state-run bank in an stock exchange filing said its board would meet on Monday, February 26, to consider sub-division or split of equity shares, subject to prior approvals from the Reserve Bank of India (RBI) and other statutory, regulatory and government, as may be required.

Canara Bank said in view of the aforesaid, pursuant to SEBI (Prohibition of Insider Trading) Regulations, 2015 read with Canara Bank's Code of Conduct for Prohibition of Insider Trading, the trading window for the directors and designated persons of the bank, their relatives, connected persons -- to deal in shares of the bank, would remain closed with immediate effect till February 28.

Canara Bank recently came out with a healthy set of December quarte results. Its guidance for NIMs was at 2.9-3 per cent, as it sees better cost management and portfolio mix, including the high-yielding RAM segment.

Canara Bank shares are up 18 per cent in January so far. The stock is up 77 per cent in the last one year. The bank has identified two subsidiaries for divestment over coming 12 months, which should supplement its otherwise moderating CET 1 of 11.3 per cent, Emkay Global said recently. The brokerage has revised upward its FY24-FY26 estimates upward by 1-6 per cent, mainly building-in contained provisions and better other income. It expects a healthy return on asset (RoA) of 1 per cent and return on equity (RoE) of 18-20 per cent for Canara Bank during FY24-26.

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