Corporation Bank to raise Rs 3,500 cr

Public sector lender Corporation Bank today said its board has approved plans to raise capital up to Rs 3,500 crore.
"The board of directors at their meeting has approved for raising of capital to the extent of Rs 3,500 crore in one or more tranches with green shoe option," it said in a regulatory filing.
The banks said the fund will be raised either through allotment of equity shares on preferential basis or follow on public issue or rights issue or qualified institutions placement (QIP) or by way of additional tier-I bond or tier II bonds or debt issue.
The fund raise may also come up in a combination of these ways as per Basel III requirements.

The bank said it will determine the issue price at an appropriate time.
Corporation Bank stock closed 5.66 per cent down at Rs 53.35 apiece on BSE today.