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Corporation Bank drops after RBI keeps it under prompt corrective action

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Capital Market
Last Updated : Dec 14 2017 | 3:05 PM IST

Corporation Bank dropped 1.73% to Rs 39.80 at 14:30 IST on BSE after the bank said that the Reserve Bank of India has placed the bank under prompt corrective action framework.

The announcement was made after market hours yesterday, 14 December 2017.

Meanwhile, the S&P Sensex was up 58.82 points or 0.18% at 33,111.86. The S&P BSE Mid-Cap index was down 7.70 points, or 0.05% at 16,782.94, underperforming the Sensex.

On the BSE, 48,310 shares were traded on the counter so far as against the average daily volumes of 67,000 shares in the past one quarter. The stock had hit a high of Rs 40.50 and a low of Rs 39.45 so far during the day. The stock had hit a 52-week high of Rs 64.70 on 5 May 2017 and a 52-week low of Rs 38.05 on 24 October 2017.

The stock had underperformed the market over the past one month till 13 December 2017, falling 9.4% compared with 0.06% gains in the Sensex. The scrip had also underperformed the market in past one quarter, falling 10.69% as against Sensex's 2.69% rise. The scrip had also underperformed the market in past one year, dropping 10% as against Sensex's 23.8% rise.

The mid-cap bank has equity capital of Rs 229.41 crore. Face value per share is Rs 2.

Corporation Bank said that the Reserve Bank of India has placed the bank under prompt corrective action framework in view of high non performing assets (NPA) and requirement to raise capital of the bank.

The action will not have any material impact on the performance of the bank and will contribute to improvement in internal control of the bank in its activities.

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Corporation Bank reported net loss of Rs 1035.20 crore in Q2 September 2017 compared with net profit of Rs 206.28 crore in Q2 September 2016. Total income fell 7.1% to Rs 5344.59 crore in Q2 September 2017 over Q2 September 2016.

Government of India holds 70.77% stake in the bank (as on 30 September 2017).

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First Published: Dec 14 2017 | 2:40 PM IST

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