Canara Bank shares in focus today as RBI approves stake sale in subsidiary

Shares of Canara Bank are in focus today after the lender said it received approval from the Reserve Bank of India (RBI) for the sale of 70 percent stake of its unlisted subsidiary Canbank Factors Ltd. In the previous session, the stock ended 1.55% higher at Rs 395.90 on BSE. Market cap of Canara Bank stood at Rs 71,821 crore. Total 5.20 lakh shares changed hands amounting to a turnover of Rs 20.58 crore.  

Canara Bank shares have gained 17.77 per cent since the beginning of this year and risen 22.23 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 411 on November 15, 2023. Canara Bank has a one-year beta of 0.2, indicating very low volatility during the period.     

In terms of technicals, the relative strength index (RSI) of the Canara Bank stock stands at 57.7, signaling the stock is trading neither in the oversold nor overbought zone.   

Rekha Rakesh Jhunjhunwala, wife of late investor Rakesh Jhunjhunwala, held 37,597,600 shares or 2.04 per cent in the public sector lender as on September 30. She has kept her stake unchanged in the bank for the last three quarters.          

"Further to inform that Canara Bank is holding 69.14 percent shares in its unlisted subsidiary, Canbank Computer Services, and proposes to buy out shares of other shareholders that is Bank of Baroda and DBS Bank India Ltd, "the bank said. 

Canara Bank further added that they are also exploring transferring the credit Card and other digital product portfolio of the Bank to CCSL. Canbank Factors was incorporated in 1991 with the Small Industries Development Bank of India and Union Bank of India as the co-promoters. 

The lender reported ad 43% rise in net profit at Rs 3606 crore in Q2 against a profit of Rs 2525 crore in the September 2022 quarter.   

NII climbed 20% to Rs 8903 crore in Q2 compared to Rs 7433.8 crore in the year-ago period.   

Total provisioning slipped to Rs 2,608 crore in the last quarter from Rs 3,637 crore in the year-ago period. Gross non-performing assets (NPAs) declined to 4.76 per cent of total loans in the September 2023 quarter over 6.37 per cent in the year-ago period.  

 

 

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