Money & Banking

Corporation Bank approve preferential shares to Govt

Our Bureau Mangalore | Updated on March 15, 2011

corporation bank

The shareholders of Corporation Bank have unanimously approved a special resolution to issue equity shares on a preferential basis to the Government of India.

The extraordinary general meeting here on Tuesday approved a resolution to issue 46,92,554 equity shares of the face value of Rs 10 each at a premium of Rs 648.49 a share — at an issue price of Rs 658.49 a share — to the Government of India, subject to compliance of Chapter VII of the SEBI (ICDR) Regulations 2009, and subject to necessary approvals.

Earlier addressing the shareholders of the bank, Mr Ramnath Pradeep, Chairman and Managing Director of Corporation Bank, said the Government of India has decided to infuse Rs 309 crore to the equity capital of the bank.

After the preferential issue, the percentage of the Government of India's holding will reach 58.52 per cent, a net increase of 1.35 per cent, he said.

At present, the authorised capital of the bank is Rs 3,000 crore. On March 31, 2010, its paid-up equity share capital stood at Rs 143.44 crore.

With this issue, the bank proposes to maintain a minimum of 8 per cent of tier-I CRAR (Capital to Risk (weighted) Assets Ratio) as on March 31, 2011.

On March 31, 2010, the tier-I capital stood at 8.13 per cent and tier-II at 6.14 per cent.

On BSE, the bank's scrip closed at Rs 553.45 against the previous closing of Rs 561.20 on Tuesday.

Published on March 15, 2011

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