According to an exchange intimation, Karnataka-based Canara Bank announced on Friday that it had approved starting the process of diluting a 14.50 per cent stake through an initial public offering (IPO) in its subsidiary, Canara HSBC Life Insurance Company.
According to the bank, the Reserve Bank of India (RBI) and the Department of Financial Services (DFS) must approve the IPO.
"In due course, the issue's scope, timeline, and specifics will be determined. As and when necessary, in accordance with applicable regulations, the bank will update the exchanges of any material developments pertaining to the same," the notice stated.
Bank's Q4 results
The public-sector bank (PSB) recorded an increase in net profit of 18 per cent to per cent Rs 3,757 crore for the quarter ending in March as a result of improved core income and a decrease in bad loans. The lender, with its headquarters in Bengaluru, made Rs 3,175 crore in net profit the previous year.
According to a regulatory filing from Canara Bank, the bank's total income increased to Rs 34,025 crore during the quarter from Rs 28,685 crore the previous year. Interest income saw a rise from Rs 23,910 crore in the same quarter last year to Rs 28,807 crore during the January–March quarter of 2024.
Stock Split
In February, the public sector lender announced that a stock split had been approved by the board to increase the liquidity of the bank's shares and increase their accessibility to retail investors.
The plan to split a single share with a face value of Rs 10 into five shares with a face value of Rs 2 each was previously approved by the bank's board. The record date declared by the PSU bank in an exchange filing was May 15, 2024, for it's stock split.
Share Price
Canara Bank's share closed on Friday, April 31, 2024, with a sight upside of 2.56 per cent . The price of the share at closing time was around Rs 118.
