Investors eyeing Canara Bank 's substantial dividend have a crucial deadline approaching. Today marks the final opportunity for shareholders to purchase Canara Bank shares and qualify for the recently announced 200% dividend. Additionally, the bank's board has approved a significant capital raising plan for the upcoming fiscal year.

Dividend Details

Canara Bank has declared a significant dividend of 200%, which translates to ₹4.00 per share. This announcement comes as welcome news to the bank's shareholders, reflecting the institution's strong financial performance and commitment to rewarding its investors.

Key Dates

Investors who wish to be eligible for this dividend must ensure they have purchased Canara Bank shares by the end of today's trading session. The record date, set for June 13, will determine the shareholders entitled to receive the dividend.

Board Approval and Shareholder Ratification

The bank's board of directors recommended this dividend on May 8. However, it's important to note that the final approval is subject to shareholder ratification at the upcoming Annual General Meeting (AGM).

Capital Raising Plan

In a significant development, Canara Bank's board has approved a capital raising plan of ₹9,500 crore for FY25-26 through debt instruments. The plan includes:

• ₹6,000 crore in tier II bonds
• ₹3,500 crore in additional tier I bonds

This fundraising initiative is subject to market conditions and necessary regulatory approvals.

Investor Implications

The substantial dividend announcement, coupled with the ambitious capital raising plan, could potentially attract new investors and positively impact the bank's share price. These developments underscore Canara Bank's financial strength and growth strategy.

Current and prospective shareholders should consider this information in their investment decisions, keeping in mind that dividends are subject to applicable taxes.

Conclusion

Canara Bank's 200% dividend announcement and ₹9,500 crore fundraising plan highlight the bank's robust financial health, shareholder-friendly policies, and strategic growth initiatives. As the record date for the dividend approaches and the bank prepares for significant capital infusion, investors have important factors to consider in their decision-making process.

Canara Bank , one of India's leading public sector banks, has announced plans to review and sanction its capital raising strategy for the fiscal year 2025-26. This strategic move demonstrates the bank's proactive approach to maintaining a robust capital position in the coming years.

Key Points

• Review Date: The bank has scheduled the review of its capital raising strategy for June 12th.
• Fiscal Year Focus: The strategy under review is specifically for the financial year 2025-26.
• Strategic Importance: This review highlights Canara Bank's forward-thinking approach to capital management, planning well in advance for future financial needs.

Significance of the Review

The announcement of this review is a significant step for Canara Bank, as it suggests the bank is actively planning for its long-term financial stability and growth. Capital raising strategies are crucial for banks to:

• Meet regulatory requirements
• Fund expansion plans
• Maintain a strong financial position in the market

While specific details of the potential capital raising methods have not been disclosed, such strategies could include various options such as:

• Rights issues
• Qualified institutional placements (QIPs)
• Other forms of equity or debt instruments

Market Implications

Investors and market watchers will likely keep a close eye on the outcome of this review, as it could provide insights into Canara Bank's future growth plans and financial outlook for the fiscal year 2025-26.

As the review date approaches, more information may become available regarding the bank's specific capital requirements and preferred methods of raising capital. This proactive planning demonstrates Canara Bank's commitment to maintaining a strong financial foundation and its readiness to adapt to future market conditions and regulatory requirements.