Shares of this public sector bank jumped around 3 percent in Thursday’s trading session after receiving approval on the IPO for MF arm Canara Robeco Asset Management Company. The share has delivered more than 40 percent return to its shareholders in six months.
With a market capitalisation of Rs. 80,085 crores, the shares of Canara Bank started Thursday’s trading session on a higher note at Rs. 441 compared to its previous close of Rs. 432.50. The shares hit a high of Rs. 446.70, gaining around 3 percent and are currently trading at Rs. 440.65 apiece.
Such a positive movement in the share price was observed after the company approved initiating the process of listing its mutual fund subsidiary Canara Robeco Asset Management Company Ltd, in the Stock Exchanges by way of an Initial Public Offer (IPO).
In addition, the bank stated that the modalities of listing will be decided in due course and will make further announcements of all material developments about the same, as and when required, as per applicable regulations.
After listing, Canara Robeco Asset Management Company will be the fifth mutual fund company to debut in the Indian stock exchange following the footsteps of HDFC AMC, Nippon Life India AMC, Aditya Birla Sun Life AMC, and UTI Asset Management Company.
Canara Robeco is India’s second oldest asset manager when it was known as Canbank Mutual Fund. After that, Canara Bank partnered with Robeco Group by way of a joint venture in 2007, and the mutual fund was renamed Canara Robeco Mutual Fund.
Coming onto the company’s financial statement, the Net Interest Income (NII) increased by 19.76 percent from Rs. 7,434 crores during Q2 FY23 to Rs. 8,903 crores in Q2 FY24. On the other hand, the net profits zoomed by around 43 percent from Rs. 2,525 crores to Rs. 3,606 crores during the same timeframe.
The banking company successfully reduced its cost-to-income ratio by 53 basis points, which now stands at 43.68 percent. Furthermore, the net NPA of the bank was reduced by 78 base points on a YoY basis, which now stands at 1.41 percent. The CASA ratio of the bank reduced from 33.93 percent during FY21-22 to 31.08 percent in FY22-23.
Headquartered in Bengaluru, Canara Bank was incorporated in 1906. The company’s offerings include Treasury Operations, Retail Banking Operations, Wholesale Banking Operations and Other Banking Operations. The bank has completed over a century in the industry and occupies a premier position in the comity of Indian banks.
Written By Vaibhav Patil
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