Canara Bank board to consider stock split on February 26; stock rallies 5% – ET BFSI

State lender Canara Bank‘s Board of Directors will meet on February 26 to consider the proposal of sub-division or split of the equity shares of the bank, the company informed exchanges ahead of the market opening on Wednesday.

The approval from the Company’s board on the stock split will be subject to prior approval of the Reserve Bank of India (RBI) and other statutory or regulatory approvals, the filing said further.

Following the announcement, shares of Canara Bank jumped 5% and hit a fresh 52-week high of Rs 548 on the NSE. On Tuesday, the stock had closed with a positive bias.

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The state-owned bank posted a 29% increase in its profit at Rs 3,656 crore in the third quarter ended December 2023. The bank had earned a net profit of Rs 2,832 crore in the same quarter a year ago. Total income increased to Rs 32,334 crore during the quarter under review against Rs 26,218 crore in the same period last year, Canara Bank said in a regulatory filing.

The net interest income of the bank rose by 9.5% to Rs 9,417 crore during the quarter.

On asset quality, the bank said its gross Non-Performing Assets (NPAs) declined to 4.39% of the gross loans by the end of December 2023 from 5.89% a year ago.

Total income increased to Rs 32,334 crore during the quarter under review against Rs 26,218 crore in the same period last year, Canara Bank said in a regulatory filing.

Similarly, net NPAs or bad loans came down to 1.32% from 1.96% at the end of the third quarter of the previous fiscal.

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