Canara Bank advances on announcing hike in lending rates

Canara Bank rose 1.92% to Rs 281.85 at 14:03 IST on BSE after the bank said it would hike the base rate and the benchmark prime lending rates by 25 basis points each, with effect from Wednesday, 1 January 2014.

Meanwhile, the BSE Sensex was up 25.44 points, or 0.12%, to 21,168.45

The announcement was made after market hours on Monday, 30 December 2013.

On BSE, so far 1.31 lakh shares were traded in the counter compared with average volume of 2.74 lakh shares in the past one quarter.

The stock hit a high of Rs 282.90 and a low of Rs 274.65 so far during the day. The stock hit a 52-week high of Rs 550 on 14 January 2013. The stock hit a 52-week low of Rs 189.90 on 28 August 2013.

The stock had outperformed the market over the past one month till 30 December 2013, rising 11.31% compared with the Sensex's 1.69% rise. The scrip had also outperformed the market in past one quarter, gaining 24.94% as against Sensex's 9.10% rise.

The large-cap bank has an equity capital of Rs 443 crore. Face value per share is Rs 10.

Canara Bank after market hours on Monday, 30 December 2013, announced increase in lending rates. The bank said it would raise its base rate to 10.20% from 9.95%, with effect from Wednesday, 1 January 2014. The bank would also hike its Benchmark prime lending rate (PLR) to 14.45% from 14.20% from Wednesday, 1 January 2014.

Canara Bank reported 5.3% fall in net profit to Rs 625.94 crore on 13.3% rise in total income to Rs 10427.48 crore in Q2 September 2013 over Q2 September 2012.

The Government of India (GoI) holds 67.72% stake in Canara Bank (as per the shareholding pattern as on 30 September 2013).

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