Canara Bank stock split: May 15, 2024 record date set

What Canara Bank announced

Canara Bank has set May 15, 2024 as the record date to determine which equity shareholders will be eligible for its stock split. The public sector lender disclosed the record date decision through a filing with the BSE. The corporate action involves a sub-division of equity shares in a 1:5 ratio. That means one fully paid-up equity share of face value ₹10 will be split into five fully paid-up equity shares of face value ₹2 each. The bank’s stated objective, as described in the broader coverage around the proposal, is to improve liquidity and make the stock more affordable for retail investors.

Split ratio, face value change, and how the holding adjusts

The split is structured as a 1:5 split. Practically, shareholders who hold 1 share before the split will hold 5 shares after the split adjustment, while the face value per share changes from ₹10 to ₹2. The total face value of the holding remains the same, but the number of shares increases. Market prices typically adjust proportionately after such actions, although the article coverage focuses on the announced ratio and the record date rather than post-split trading levels. The bank described the sub-division as fully paid-up equity shares, which is the standard terminology used in exchange filings.

The key dates investors tracked

The split proposal was approved by Canara Bank’s board on February 26, 2024, subject to regulatory approvals. Separately, earlier disclosures indicated that the board meeting to consider the split was scheduled for February 26, reflecting the sequence of “consideration” followed by approval. After the approval, the stock split remained subject to prior approval from the Reserve Bank of India (RBI) and other statutory or regulatory approvals as required. The record date was later fixed as May 15, 2024 for determining shareholder entitlement.

What the BSE filing said

In the BSE filing referenced in the coverage, Canara Bank said it fixed May 15, 2024 as the record date for the purpose of sub-division or split of existing equity shares. The filing clarified the mechanics: one equity share of face value ₹10 each, fully paid up, to be sub-divided into five equity shares of face value ₹2 each, fully paid up. The filing-based disclosure matters because record dates determine who receives the benefit of corporate actions. Investors buying on or after the ex-split date typically do not qualify for the pre-split entitlement, while those on the shareholder register as of record date do.

Why companies do stock splits

A stock split is a corporate action where a company increases the number of outstanding shares by splitting existing shares into multiple shares. The general aim is to lower the trading price per share without changing the underlying business value, which can make the stock appear more accessible to smaller investors. Market commentary in the provided text also links splits to improved liquidity, which can increase trading participation. In Canara Bank’s case, the split rationale described across reports was to improve liquidity and broaden the retail investor base.

Price and trading snapshot mentioned in the reports

The reports include multiple market snapshots around the announcement period and subsequent trading sessions. In one instance, Canara Bank shares ended at ₹578.70, down 0.83% versus the previous close of ₹583.55. In another session, the stock rose to an intraday high of ₹606 on the BSE amid broader market volatility. The coverage also cited a market capitalisation of about ₹1.08 lakh crore at that time. Trading activity mentioned included 10.23 lakh shares changing hands, with turnover of ₹61.42 crore.

52-week levels and performance figures cited

The coverage referenced several 52-week highs and lows across different dates and sources. It noted that the stock had nearly doubled from a 52-week low of ₹291.30 touched on May 19, 2023. It also reported a 52-week high of ₹620 on April 8, 2024. Other figures cited include a 52-week low of ₹272.30 on March 24, 2023, and another low of ₹268.85 on February 24, 2023, indicating different reference points used across reports. On performance, the counter was described as up 57% in six months and 5% in one month in one section, while another noted gains of 35.61% since the beginning of the year and a rise of 96% in one year.

RBI penalty mentioned alongside the split coverage

One report also highlighted an RBI monetary penalty of ₹32.30 lakh (₹0.323 crore) on Canara Bank. The penalty was linked to non-compliance with certain directions issued by RBI, including guidance related to the data format for furnishing credit information to credit information companies and regulatory measures, and references to Resolution Framework 2.0 related directions for MSMEs and for individuals and small businesses. The penalty was reported in the same flow as the split-related market reaction, but the stock was described as trading higher despite that disclosure in the cited report.

What broker commentary said in the provided text

The provided text includes a reference to Motilal Oswal recommending a buy rating with a target price of ₹570 in a research report dated January 24, 2024. The coverage noted that the lender’s share price had surpassed that target on February 27. Another section of the text also mentions a target price of ₹670 and a valuation reference of 0.96x FY26e P/BV, but it is presented as part of a broader recommendation narrative in the supplied content.

Key facts table

What investors watch next

For investors, the record date and the related ex-split date are the operational milestones that determine entitlement and price adjustment mechanics. The board approval and the record date are already specified in the reports, while the split itself was described as subject to RBI approval and other regulatory clearances. Market participants will also track how liquidity and participation change after the split, since improved liquidity was cited as the aim of the exercise.

Conclusion

Canara Bank has fixed May 15, 2024 as the record date for its 1:5 stock split, converting each ₹10 face value share into five ₹2 face value shares. The move follows the board’s February 26 approval and remains linked to regulatory approvals, including RBI clearance, as cited in the reports.