Canara Bank gains after cutting interest rates on term deposits

Canara Bank gained 1.46% to Rs 405.95 at 10:55 IST on BSE after the bank said that it has cut interest rates on term deposits with effect from 10 December 2014.

The bank made the announcement after market hours on Tuesday, 9 December 2014,

Meanwhile, the BSE Sensex was down 16.37 points, or 0.08%, to 27,774.09.

On BSE, so far 47,780 shares were traded in the counter, compared with an average volume of 2.32 lakh shares in the past one quarter.

The stock hit a high of Rs 408.80 and a low of Rs 397.40 so far during the day. The stock hit a 52-week high of Rs 498 on 9 June 2014. The stock hit a 52-week low of Rs 209 on 14 February 2014.

Shares of PSU bank had outperformed the market over the past one month till 8 December 2014, rising 2.61% compared with 0.9% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 5.22% as against Sensex's 2.93% rise.

Canara bank has reduced the interest rate on term deposits below Rs 1 crore for maturity between 270 days to less than one year to 8.25% from 8.5%. The bank has reduced the interest rate for maturity of one year and above to less than three years to 9% from 9.05%. The bank has reduced the interest rate for maturity of three years and above to less than eight years to 8.75% from 9%.

For term deposits above Rs 1 crore, the bank has also reduced the interest rate on deposits for maturity between 46 days to 90 days to 7.75% from 8%. For deposits above Rs 1 crore for maturity between 91 days to 179 days, the rate has been cut to 8.25% from 8.5%. For deposits above Rs 1 crore for maturity of 180 days to not less than two year, the rate has been cut to 8.5% from 8.75%. For deposits above Rs 1 crore for maturity of two years and above to less than three years, the rate has been cut to 8% from 8.75%. For deposits above Rs 1 crore for maturity of three years and above to ten years, the rate has been cut to 8% from 8.5%.

Canara Bank's net profit rose 0.1% to Rs 626.84 crore on 14.3% rise in total income to Rs 11915.21 crore in Q2 September 2014 over Q2 September 2013.

The Government of India holds 69% stake in the bank as at 30 September 2014.

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