Canara Bank shares surge as board mulls over stock split
Canara Bank's board is scheduled to meet on February 26 to discuss the potential split of the bank's equity shares. Following this news, Canara Bank's shares jumped 5%, hitting a new 52-week high of Rs. 548. The stock split will require approval from the Reserve Bank of India (RBI) and other relevant authorities. A stock split is where a company increases the number of its outstanding shares by dividing each existing share into multiple shares.
Q3 financial performance boosts Canara Bank's shares
Canara Bank posted a 29% rise in net profit for the third quarter ending December 2023, reaching Rs. 3,656 crore, up from Rs. 2,832 crore during the same period last year. The total income increased to Rs. 32,334 crore in the quarter, compared to Rs. 26,218 crore in the previous year. The bank's net interest income experienced a 9.5% growth, amounting to Rs. 9,417 crore.
Improved asset quality indicators for Canara Bank
Canara Bank's asset quality has significantly improved, with gross Non-Performing Assets (NPAs) dropping to 4.39% of gross loans by December 2023, down from 5.89% a year earlier. Additionally, net NPAs or bad loans fell to 1.32% from 1.96% at the end of the third quarter of the previous fiscal year. The positive financial performance and enhanced asset quality have fueled the rally in Canara Bank's shares ahead of the stock split discussion.
