The board of directors of Canara Bank on August 26 has granted in-principle approval for the sub-division of one equity share of the bank having a face value of Rs 10 each into five equity shares of face value of Rs 2 each.
The stock split proposal is subject to requisite approvals, the bank said in a communication to the stock exchange.
The Bangalore-headquartered bank is the second PSU bank from Karnataka, out of the four banks that have decided to opt for reducing the face value of shares recently, to take such a decision.
Axis Bank had recently implemented its decision to split the face value of its shares from Rs 10 each to Rs 2 each. The Jammu & Kashmir Bank ,in which the state government has majority stake, has fixed Sept 5 as the record date for subdivision of its equity shares from Rs 10 into ten shares of Re 1 each. Mangalore based PSU Bank Corporation Bank had recently announced its decision to split the share face value from Rs 10 into five shares of Rs 2 each.
Shares of Canara Bank are trading at Rs 394.05, up by 55 paise, on the BSE.