Canara Bank Approves First-Ever Stock Split, Awaits RBI Approval
The Board of Canara Bank sanctioned its inaugural stock split on Monday. According to the decision, each equity share with a face value of Rs 10 will be divided into five equity shares with a face value of Rs 2 each.
However, this proposed split remains contingent upon approval from the Reserve Bank of India (RBI). Canara Bank anticipates that the stock split process will be finalised within the next two to three months.
The primary objective behind this move, as outlined in the exchange filing, is to augment the liquidity of the public sector bank's shares. Additionally, the stock split is expected to render Canara Bank's shares more accessible and affordable for retail investors in the future.
The initiation of this stock split follows Canara Bank's announcement on 7 February, wherein it informed the exchanges regarding the board meeting convened to seek an in-principle approval from the Board of Directors for the proposed split of equity shares.
Despite this significant development, shares of Canara Bank concluded the trading session on a slightly lower note on the Bombay Stock Exchange (BSE), settling at Rs 572.80 a piece, representing a decline of 1.24 per cent.
In comparison, the benchmark Sensex registered a marginal decrease of 0.48 per cent. Over the past year, Canara Bank's stock has demonstrated robust performance, surging by 107.14 per cent.
As Canara Bank charts its course towards the stock split pending RBI approval, stakeholders await further updates regarding this strategic move and its implications on the bank's financial landscape.
