This means, shareholders who hold shares of the company as of Monday’s close, would be eligible to receive one bonus share for every five shares that they own.
For example, if a shareholder has 100 shares of Karur Vysya Bank, they will receive 20 shares as bonus, taking the total count to 120. The stock price will also adjust in proportion.This is the fifth instance the company has issued bonus shares in the last 23 years. In the past, Karur Vysya has issued bonus shares in August 2018, September 2010 and October 2002.
In August 2018, it had issued bonus shares in the 1:10 ratio, in September 2010 and October 2002 it had issued the same in 2:5 and 1:1 ratios.Karur Vysya Bank reported a 13.5% increase in its first quarter net profit at ₹521 crore from ₹459 crore in the previous year. Its net interest income increased 5.1% to ₹1,080 crore from ₹1,027 crore last fiscal.
Its total assets stood at ₹1,25,371 crore as on June 30 compared to ₹1,08,766 crore in the year-ago period.
Its net interest margin was at 3.86% from 4.14% in the previous year. Meanwhile, its gross non-performing assets (NPA) stood at 0.66% in the June quarter compared to 0.76% in the previous year. Its net NPA was at 0.19% in comparison to 0.2% sequentially.
Karur Vysya Bank shares gained 3.8% to hit an intraday high of ₹268.2 apiece on Monday. The stock was trading 2.6% up at ₹265 apiece around 2.05 pm. It has gained 17.5% this year, so far.
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