Canara Bank shares in focus today as lender to raise Rs 7,500 crore

Shares of the state-owned lender Canara Bank are in focus today after board of the lender approved raising of funds up to Rs 7,500 crore through debt instruments in the current financial year (FY24). 

The stock closed at Rs 296.75 on BSE in the previous session. Market cap of Canara Bank stood at Rs 53,970 crore.  

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The large cap stock was trading at Rs 297.5 today, up 0.25 per cent in the pre-opening on BSE. 

Canara Bank shares have lost 12 per cent since the beginning of this year and risen 58 per cent in one year. The banking stock hit a 52-week low of Rs 178.50 on July 1, 2022 and a 52 week high of Rs 341.60 on January  3, 2023 

In terms of technicals, the relative strength index (RSI) of the Canara Bank stock stands at 41.4, signaling the stock is trading neither in the oversold nor overbought zone. Canara Bank has a one-year beta of 1.7, indicating very high volatility during the period.   

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"...the Board of Directors of the bank in its meeting held today has approved the Capital Raising Plan of the bank for the financial year 2023-24 amounting up to Rs 7500 crore by way of Debt Instruments (Additional Tier I / Tier II Bonds)," the bank said on June 28. 

The board cleared raising capital via Basel III Compliant Additional Tier I Bonds to the extent of Rs 3,500 crore and Basel III Compliant Additional Tier II Bonds to the extent of Rs 4000 crore during the FY 2023-24, subject to market conditions and necessary approvals. 

The bank reported a 90.63 per cent jump in its standalone net profit at Rs 3175 crore for the fourth quarter ended March 31, 2022 against a net profit of Rs 1666.22 crore in the year-ago period. The net interest income (NII) climbed 23.01 per cent to Rs 8,616 crore in Q4 against Rs 7,006 crore in the year ago period. 

The board of the bank has recommended a  dividend of Rs 12 per equity share (120%) of face value of Rs 10 each for the year ended on 31.03.2023 subject to requisite approvals. 

Operating profit rose 17% YoY to Rs 7,252 crore during the March quarter. 

 

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