- Karur Vysya Bank board will meet on July 24 to consider a bonus share issue proposal
- The bonus issue will be subject to shareholder approval and linked to Q1FY26 unaudited results
- This would be the bank's fourth bonus issue since listing and first in seven years
Karur Vysya Bank, a Tamil Nadu-based private lender, is scheduled to declare a bonus issue this week. The Board of Directors of the bank will meet on July 24 to finalise the issuance of bonus shares.
The bonus issue proposal will be taken up by the bank's board for consideration and approval along with unaudited financial results for Q1FY26.
“We wish to inform you that in the said meeting, the Board would also consider the proposal for the issue of bonus shares in accordance with the applicable provisions, subject to approval of Shareholders of the Bank,” the bank said in an exchange filing dated July 19.
A bonus issue involves issuing free shares to existing shareholders. It is typically drawn from the company's profits and allotted in a fixed ratio. While it increases the number of shares held, it doesn't change the overall value of an investor's holdings, as the share price is adjusted accordingly after the record date to reflect the expanded share base.
It is the first time in seven years that the bank is set to consider a bonus share issue for its investors. If approved, it would be the fourth bonus issue by the bank since its listing.
Karur Vysya Bank Bonus Issue Record Date
The bank is yet to announce the record date for the bonus share issue.
Karur Vysya Bank Bonus Issue History
In the past, Karur Vysya Bank has announced bonus issues on three occasions. In 2002, it offered one bonus share for each share held (1:1). In 2010, it issued two bonus shares for every five shares held (2:5) and in 2018, it granted one bonus share for every ten held (1:10).
Karur Vysya Bank Q4FY25 Results
Karur Vysya Bank reported a 12.55% year-on-year (YoY) increase in net profit to Rs 513.36 crore in Q4FY25 from Rs 456.1 crore in Q4FY24. Its total income rose 7.5% YoY to Rs 3,025.26 crore in Q4FY25 from Rs 2,813.42 crore in the year-ago quarter. Total expenditure, excluding provisions and contingencies, grew 12.5% to Rs 2,190.29 crore in Q4FY25 from Rs 1,946.51 crore in Q4FY24.
Shares of Karur Vysya Bank rallied up to 3% to hit an intraday high of Rs 276 apiece on the NSE on Monday. However, the stock pared some of its early gains to trade 0.71% higher at Rs 270.1 apiece at 1:36 p.m., compared to a 0.32% rise in the benchmark Nifty50 at 25,048.75.
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