Private lender Karur Vysya Bank will split company's stock in a ratio of 1:5 to improve liquidity in market as well make shares affordable to small investors.
The lender had come out with the share split proposal at the end of August.
The board of directors at a meeting held today approved the proposal for sub-division of existing one equity share of Rs 10 each face value into 5 number of equity shares of Rs 2 each, the bank said in a regulatory filing.
On the rationale behind the split, the bank said it wants "to improve liquidity of the bank's shares in the stock market as also to make them affordable to the small investors," it said.
Karur Vysya said it expects to complete the process of share split by November 2016.
Shares of the bank today closed 1.79 per cent higher at Rs 476.65 apiece on BSE.
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