As May is nearing to end, PSU lender, Canara Bank is back in the focus and this time with a potential banger upside. From the current price level, Canara Bank is expected to rise by a whopping 21%. At the latest, the bank is planning to consider capital raising proposal by end of May-month. Also, the bank may see trends in June due to its 161% dividend payout. This comes after Canara Bank's share price were sub-divided into the ratio of 1:5.
Canara Bank Share Price:
Currently, on BSE, Canara Bank's share price is at Rs 115.95 apiece, down by 0.9% with a market cap of Rs 1,05,174.20 crore. The stock's 52-week high and low is at Rs 126.53 and Rs 58.29 apiece respectively.
YTD, Canara Bank's shares have rallied by 31%. While in a year, the stock zoomed by nearly 89%. Notably, Canara Bank's all-time gains are at whopping 1,084.37%.
Motilal Oswal On Canara Bank:
In its latest view dated May 28, 2024, Motilal Oswal said, Canara Bank's loan growth to remain healthy, with a focus on high-yielding RAM asset books. Also, the brokerage cited that management aims to increase the mix of CASA deposits and improve NIM.
Additionally, Motilal believes there is limited impact expected from RBI's draft circular on project finance loans. In terms of asset quality, the brokerage said it is steadily improving, with recoveries and upgrades outpacing slippages. However, it believes that branch rationalization and digitalization to help contain cost ratios.
"Reiterate BUY with a TP of INR140 for Canara Bank," Motilal said.
Canara Bank Fundraising Plan:
The next big trigger is Canara Bank's board meeting for considering capital raising proposal.
As per the regulatory filing, a meeting of the Board of Directors of the Bank is scheduled to be held on Friday, 31st May 2024, at its Head Office, Bengaluru inter-alia to consider and approve the Capital Raising Plan of the Bank for the financial year 2024-25.
Canara Bank Dividend:
After first ever stock split, Canara Bank will be in focus in June month for its Rs 16.10 per equity share dividend (i.e. 161% of face value of Rs.10/-) each to the shareholders for the year 2023-24.
Post stock split, Canara Bank in its regulatory filing said, "Shares of our bank has undergone subdivision at the ratio of 1:5 for which the record date was 15.05.2024. The new face value is Rs.2/-. Accordingly, we wish to inform you that the dividend of Rs. 3.22 per equity share (i.e 161% of the face value of Rs. 2/-) each to the shareholders for the year 2023-24, will be paid subject to the approval of shareholders at the ensuing Annual General Meeting of the Bank."
The record date for determining eligible shareholders for the dividend payout has been fixed on June 17, 2024.
Canara Bank Stock Split:
Earlier, on May 15, Canara Bank stocks sub-divided in the ratio of 1:5. Simply put, 1 existing equity share of Canara Bank has split into 5 shares. Notably, the share capital reserves remained the same. The face value of Rs 10 split into Rs 2 each.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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