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The board of directors of the bank on May 3, announced issue of bonus shares (including ADS holders) in the ratio of 1:10 i.e. one equity share of Rs 2 each for every 10 fully paid-up equity shares held on the record date. The board also recommended a dividend of Rs 2.5 per share for FY2017 pre-bonus issue.
The record date for issue of bonus shares is fixed as June 21.
Since May, post January-March quarter (Q4FY17) results, the stock have outperformed the market by 17% as compared to 4% rise in the S&P BSE Sensex.
Analysts at Motilal Oswal Securities reiterate ‘buy’ rating on the stock as it expects overall pool of stressed loans is showing signs of stability, and bulk of non-performing assets (NPA) recognition is happening from watch list and OSRL (outstanding standard restructured loans).
Further expected measures by GoI/RBI for resolution of lumpy stressed loans provide comfort. Strong capitalization (tier I of 14.4%), significant improvement in granularity of book (around 57% retail + SME) and sustained improvement in liability profile (helping to de-risk business) are the key positives, the brokerage firm said in Q4FY17 result update.