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Corporation Bank gains after announcing capital raising plans

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Capital Market
Last Updated : Mar 10 2016 | 11:28 AM IST

Corporation Bank rose 1.35% to Rs 41.40 at 11:00 IST on BSE after the bank announced that its board of directors approved raising of capital of the bank to the extent of Rs 1000 crore through various routes deemed fit.

The announcement was made after market hours yesterday, 9 March 2016.

Meanwhile, the BSE Sensex was down 225.98 points, or 0.89%, to 24,573.62.

On BSE, so far 48,025 shares were traded in the counter, compared with an average volume of 51,217 shares in the past one quarter. The stock hit a high of Rs 41.85 and a low of Rs 40.50 so far during the day. The stock hit a 52-week high of Rs 62.80 on 15 April 2015. The stock hit a 52-week low of Rs 30.75 on 25 February 2016. The stock had outperformed the market over the past one month till 9 March 2016, rising 5.83% compared with 3.22% gains in the Sensex. The scrip had also outperformed the market in past one quarter, falling 0.24% as against Sensex's 0.97% fall.

The mid-cap state-run bank has an equity capital of Rs 204.50 crore. Face value per share is Rs 2.

Corporation Bank announced that its board of directors at a meeting held on 8 March 2016, approved raising of capital of the bank to the extent of Rs 1000 crore in one or more tranches with Green Shoe option if any by way of either issue and allotment of equity shares on preferential basis or by way of additional Tier I bonds or follow on public issue or rights issue or qualified institutions placement or debt issue or any other method as per Basel III requirements and for determination of issue price at an appropriate time subject to necessary approvals. This is exclusive of earlier approval of the board on 6 November 2014 where in Rs 500 crore by way of additional Tier I bonds and Rs 500 crore by way of Tier II bonds is yet to be raised, Corporation Bank said.

Corporation Bank reported net loss of Rs 388.38 crore in Q3 December 2015 compared with net profit of Rs 147.21 crore in Q3 December 2014. Total income fell 1% to Rs 5158.52 crore in Q3 December 2015 over Q3 December 2014.

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The Government of India holds 69.11% stake in the bank as per the shareholding pattern as at 30 September 2015.

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First Published: Mar 10 2016 | 11:04 AM IST

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