The Corporation Bank has appointed Deloitte Touche and Haskins for the valuation of its subsidary CorpBank Securities. The Life Insurance Corporation (LIC) is looking at picking up stake in CorpBank Securities. LIC has appointed UTI Seccurities for the valuation of the proposed investment.
Confirming this development, CorpBank Securities managing director Radhakrishnan Nair said, "Corporation Bank has appointed Deloitte Touche and Haskins for valuing the company recently."
The company has logged an operating profit of Rs 70 crore on a total business of Rs 18,000 crore till the end of November. The company has a paid up capital of Rs 100 crore.
LIC has earlier picked up a 12.32 per cent stake in Corporation Bank. Subsequently, the bank had given a preferential allotment of 2.4 crore equity shares of Rs 10 each at a premium of Rs 186 per share to LIC, thus increasing its stake to 27 per cent. LIC had paid Corporation Bank Rs 470.4 crore for the 14.61 per cent prefernetial issue.
LIC would be investing another Rs 50 crore in CorpBank Securities. According to sources, the company is likely to give a preferential allotment to LIC. The life insurance major had earmarked an investment of Rs 50,000 crore for the current fiscal, of which 50 per cent will be in government securities.
LIC's investment in CorpBank Securities will enable the insurance major to invest in the call money market, following the recent amendments made by the banking regulator in phasing out non-banking entities in the call money market.
Corporation Bank has also appointed National Institute of Bank Managment (NIBM) for setting up human resource policy for the bank.
After its tie up with LIC, Corporation Bank plans to set up seven automated teller machines (ATMs) in LIC offices in Mumbai. The bank is likely to set up 500 off-site ATMs at LIC branches across the country beside setting up branches in LIC premises.
