The shares of the banking service provider gained up to 7 percent after the company received approval for initiating the process for cutting down 14.50 percent stake from its subsidiary.
Canara Bank market capitalization is Rs 1.15 lakh crore, the shares were trading at Rs 127.40 per share, increasing around 7.97 percent as compared to the previous closing price of Rs 118 aiece.
As per the exchange filing, Canara Bank has relevant approval for initiating the process of diluting 14.50 percent equity share of the bank in its subsidiary Canara HSBC life Insurance Company Ltd by listing the company in stock exchange through intial public offer (IPO). The size of the issue, time and modalities of issue will be decided in due course.
Looking into the company’s financial performance, revenue surge by 20 percent from Rs 24,304 crore in Q4FY23 to Rs 29,286 crore in Q4FY24, during the same time frame net profit climbed by 17 percent from Rs 4,229 crore to Rs 4,960 crore.
As of March 31, 2023, the CASA ratio of the Canara Bank is 32.29%, and Net Non-Performing Assets (Net NPA) increased by 1.27 percent
The bank has given a return 47.79 percent in six months and a multibagger return of 102.24 percent in a year.year. If shareholder invests Rs. 1 lakh in the company would be worth Rs. 2.02 lakh in a year.
The net interest income of the Canara Bank as shown in its financial statements saw growth from Rs 8,617 crores in March 2023 to Rs 9,580 crores in March 2024 which resulted in year-on-year growth of 16.32 percent.
Canara Bank engages in Treasury Operations, Retail Banking Operations, Wholesale Banking Operations, Life Insurance Operations, and Other Banking Operations. Personal and business banking are among the diverse products and services offered by the bank.
Written by:- Abhishek Singh
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