Canara Bank Surges Over 5% to Hit 52-Week High on Plans for First-Ever Stock Split

7 Feb 2024 , 03:42 PM

On February 7, Canara Bank shares surged over 5%, reaching a new 52-week high of ₹550. At 10 am, the stock was quoted at ₹546.20 on the National Stock Exchange, marking a 4.75% increase from the previous close.

The significant uptick in share price followed the PSU bank’s announcement of its intention to consider a stock split. The bank’s board meeting, scheduled for February 26, will address this matter, seeking in-principle approval for the sub-division/split of the bank’s equity shares, subject to regulatory approvals, including that of the Reserve Bank of India (RBI) and other statutory authorities.

For the December quarter, Canara Bank reported a net profit of ₹3,656 crore, surpassing the Street’s expectations of ₹3,524.5 crore. This marked a substantial 26.87% increase in net profit compared to the corresponding period last year. Additionally, the bank’s gross non-performing assets (NPA) decreased to 4.39% from 5.89%, while net NPA improved to 1.32% from 1.96% year-on-year.

As of December 31, Canara Bank operated 9,585 branches, with a distribution across rural, semi-urban, urban, and metro areas, along with 10,463 ATMs. Furthermore, it maintains three overseas branches in London, New York, and Dubai.

Over the past year, the stock has demonstrated robust performance, gaining 85.38%, surpassing the Nifty PSU Bank index, which has recorded a 69% increase over the same period. Moreover, Canara Bank’s shares are trading above their 20, 50, and 200-day moving averages, indicating positive momentum in the market.