Centurion rights to open Aug 16

Centurion Bank's rights issue worth Rs 90.8 crore is likely to hit the market on August 16 and the allotment is expected be through by September 30.

Post issue, the bank's capital adequacy ratio will increase to 9.3 per cent from 9 per cent, said Anil Jaggia, chief operating officer. The bank had declared a record date of July 23 for the rights issue.

"The rights issue for equity shares at face value of Rs 1 and a premium of Rs 3 is expected to remain open for a month till September 15," he added.

Jaggia was speaking on the sidelines of a press conference after announcing a tie-up with Kuoni Travel India and Western Union for money transfer service in Mumbai.

The bank has raised Rs 43 crore as Tier II capital in June while also securitising assets (two wheeler loans) worth Rs 58 crore, he added.

As per RBI guidelines, the private bank can further raise Rs 45 crore as tier-II capital, said Jaggia.

The bank has also received the Reserve Bank of India approval to convert its 14 marketing offices into full fledged branches. With the new branches, the bank would have 75 branches, 22 extension counters and 149 ATMs across the country, he added.

The tie-up with Western Union and Kuoni Travel India will see money transfer service available at 61 bank branches.