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Canara Bank gains after additional capital raising plans

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Capital Market
Last Updated : Nov 19 2015 | 6:01 PM IST

Canara Bank rose 0.04% to Rs 269.60 at 15:25 IST on BSE after the board of directors permitted bank to raise additional capital of Rs 2400 crore through issue of BASEL-III compliant tier II bonds by way of private placement.

The bank announced during market hours today, 19 November 2015.

Meanwhile, the S&P BSE Sensex was up 357.45 points or 1.4% at 25,838.40.

On BSE, so far 1.33 lakh shares were traded in the counter as against average daily volume of 2.75 lakh shares in the past two weeks.

The stock hit a high of Rs 273 and a low of Rs 268 so far during the day. The stock hit a 52-week high of Rs 478.40 on 28 January 2015. The stock hit a 52-week low of Rs 250.85 on 4 September 2015.

The stock had underperformed the market over the past one month till 18 November 2015, falling 10.44% compared with 6.36% fall in the Sensex. The scrip had also underperformed the market in past one quarter, dropping 22.78% as against Sensex's 8.44% decline.

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The large-cap PSU bank has an equity capital of Rs 542.99 crore. Face value per share is Rs 10.

Canara Bank said that the bonds will have a coupon rate as decided by the Bond Committee of the bank to support the asset growth during 2015-16 & also to maintain healthy level of CRAR.

Canara Bank's net profit declined 15.63% to Rs 528.86 crore on 4.7% growth in total income to Rs 12477.95 crore in Q2 September 2015 over Q2 September 2014.

The Government of India held 66.3% stake in Canara Bank (as per the shareholding pattern as on 30 September 2015).

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First Published: Nov 19 2015 | 3:21 PM IST

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