Central Bank of India today announced that it's majority shareholder, the Government of India, had subscribed to perpetual non-cumulative preference shares (PNPCPS) worth Rs 450 crore on March 31, 2010.
The bank perpetual preference shares at an annual floating coupon to be bench-marked to the repo rate with a spread of 100 basis points to be re-adjusted annually.
Perpetual preference shares are bonds with no maturity date and qualify as Tier I capital for the computation of a bank's Capital Adequacy Ratio.
