Canara Bank Approves Share Split, Share Price Up; RBI Imposes Penalty

27 Feb 2024 , 01:39 PM

Canara Bank’s share price increased by nearly 1% in early trade on February 17 after the approval of the sub-division of equity shares. The board of directors sanctioned the sub-division, splitting each equity share of face value ₹10 into five shares of face value ₹2 each, subject to RBI approval.

The move aims to enhance share liquidity, affordability for retail investors, and broaden the investor base. The expected completion time is two to three months from the intimation of the Board Meeting date (February 7, 2024) to Stock Exchanges, pending RBI approval.

The RBI imposed a monetary penalty of ₹32.30 Lakh on Canara Bank for rule violations related to data rectification and restructuring certain accounts.

In the same month, the bank raised ₹2,000 Crore through Basel III compliant Additional Tier 1 bonds at a coupon of 8.40%. Canara Bank reported a 26.87% increase in net profit to ₹3656 Crore for the October-December quarter of FY 2023-24.

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