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Canara Bank Shares Surge 4.6% After Stock Split Takes Effect

May 16, 2024

Canara Bank Shares Surge 4.6% After Stock Split Takes Effect

Canara Bank’s shares saw a significant surge of 4.6% to reach a day’s high of Rs 118.40 on the BSE during Wednesday’s trading session, following the implementation of a 1:5 stock split.

Under this split, each share with a face value of Rs 10 was split into 5 shares, each with a face value of Rs 2. This decision, approved by the bank’s board earlier this year, aims to enhance liquidity in Canara Bank’s shares, make them more affordable for retail investors, and broaden the bank’s retail investor base.

The PSU lender reported a robust 18% growth in standalone net profit, reaching Rs 3,757 crore for the quarter ended March 2024, compared to Rs 3,174 crore in the same period last year. Additionally, the Board recommended a dividend of Rs 16.10 per share (161% of face value) for the financial year 2023-24.

Currently, the Government of India holds a 63% stake in Canara Bank, with the remaining 37% owned by the public.

Canara Bank’s stock has delivered impressive returns, with a 92% increase over the past year and a 33% gain in the current calendar year.

Technical analysis indicates that the stock is currently positioned below all its exponential moving averages and is hovering around the 43 mark on the Relative Strength Index (RSI), according to Trendlyne.

The stock split and positive financial performance have contributed to increased investor interest and confidence in Canara Bank’s shares, driving the recent surge in trading activity. Investors are closely monitoring further developments and performance indicators related to the bank’s stock.

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