Canara Bank’s Stock Split Date Boosts Shares Despite Dip

Canara Bank Ltd’s shares rebounded on Friday following the announcement of a record date for its upcoming stock split. Set for May 15, 2024, the split will see each existing share with a face value of Rs 10 divided into five shares with a face value of Rs 2 each. Despite an initial drop of over 3.55 percent, the stock recovered to Rs 580.45 by the close of trading, signaling a positive market response. This move aims to enhance liquidity and is viewed as a strategic measure by the state-run lender.

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Strong Ratings and Shareholder Confidence Drive Canara Bank’s Strategic Moves

Fitch Ratings’ affirmation of Canara Bank’s long-term Issuer Default Rating (IDR) at ‘BBB-‘ with a stable outlook earlier in the week further bolstered investor confidence. Over the past four years, Canara Bank’s shares have surged by more than 615 percent, reflecting robust growth and investor trust. Notable shareholder Rekha Rakesh Jhunjhunwala holds a stake of 1.45 percent in the bank, valued at Rs 1,524.3 crore as of Friday. However, Jhunjhunwala had reduced her holdings during the January-December period.

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The stock split announcement, coupled with positive ratings and a strong performance trajectory, underscores Canara Bank’s commitment to enhancing shareholder value and improving market liquidity. With a notable surge in share value over recent years and strategic moves like the stock split, the bank appears well-positioned to navigate future market dynamics and continue delivering value to its investors.