Central Bank of India rights issue in Jan-March qtr: CMD

Public sector lender Central Bank of India is planning to come out with a Rs 2,500 crore rights issue in the January-March quarter this fiscal, the bank's top boss said today.

"It (Rights issue) would happen sometime in next quarter," Central Bank of India CMD S Sridhar said on the sidelines of a seminar organised by the Finance Ministry here.

The government has already approved rights issue for Central Bank of India in June this year. However, it is awaiting RBI's approval for the rights issue.

Meanwhile, it has appointed six merchant bankers for the issue. Government currently holds 80.2 per cent stake in the bank and therefore it will have to subscribe an equal amount in the proposed rights issue when it hits the market.

The Central Bank of India share was trading at Rs 199.45, up by 5.33 per cent on the Bombay Stock Exchange.