Canara Bank Shares Slump 2.88% After Declaring Bumper Dividend

Canara Bank according to its routine exchange filing, reported an 18 per cent jump in its profit. In addition, it also declared a bumper dividend of Rs 16.10 per share.

Canara Bank Shares Decline

Canara Bank, however, has not been able to reverse its fortunes on the stock market. As of Wednesday, 8 May, the bank shares declined by 2.88 per cent since the beginning of the trading day.

It is interesting to note that the state-owned bank's shares have been on the decline for the past week. In fact, since 2 May the shares declined over 8 per cent in value.

When it comes to its earnings figures, Canara bank posted profits of Rs 3,757.23 crore for the March quarter. For comparison, the bank had accrued Rs 3,174.74 crore in the same quarter last year. Net interest income (NII) for the bank also rose 11.18 per cent to 9,580 crore. In addition, the Net interest margin (NIM) came in at 3.05 per cent.

PSBs Recover After Slump

This also happened barely a day after a collective meltdown of PSB shares on the market, which declined after an RBI proposition for reorientation of operations, including conditions for giving out loans to customers. The Reserve Bank of India published a draft on a harmonised prudential framework for lenders, thereby tightening the norms for lenders.

Shares of major banking firms, including SBI, and PNB, slumped. Interestingly, these PSBs appear to have reversed that trend, as SBI, Bank of India, and Punjab National Bank are all trading in green. All the aforementioned stocks are trading with gains of over 1 per cent on average.

in addition, Nifty Bank is also trading in red, with a 0.58 per cent slump in numbers at 14:39 IST