Canara Bank - 28th September 2020 - Angel Broking

Mr. Jaikishan Parmar - Sr. Equity Research Analyst, Angel Broking Ltd

"Canara Bank board approved raising additional equity capital of up to Rs.2,000 crores through Qualified Institutional Placement (QIP). QIP issue shall be within the overall maximum limit of the Board-approved capital raising plan (FY21) of Rs.5000 Crore Equity Share Capital. Canara Bank CAR as of 1 April 2020 was at 12.96, and CET 1 stands at 8.4%. Whereas the regulatory requirement for CET1 is 7.375%. Current CET 1 is near the regulatory threshold. And ongoing economic slowdown would impact the asset quality of the bank, which will force the bank to take escalated provision. Hence, it was necessary to shore up the capital base. Currently, bank trade at below its book value, and raising capital at a lower valuation will dilute capital."

Shares of CANARA BANK was last trading in BSE at Rs.91.05 as compared to the previous close of Rs. 87.2. The total number of shares traded during the day was 529646 in over 3574 trades.

The stock hit an intraday high of Rs. 91.6 and intraday low of 87.8. The net turnover during the day was Rs. 47654134.

Source : Equity Bulls

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