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Central Bank approaches Sebi for Rs2,500 cr rights issue

Central Bank approaches Sebi for Rs2,500 cr rights issue
PTI
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First Published: Tue, Feb 01 2011. 04 08 PM IST
Updated: Tue, Feb 01 2011. 04 08 PM IST
Mumbai: Public sector lender Central Bank of India has filed papers with market regulator Sebi for approval to raise Rs2,500 crore through a rights issue, which will hit the market this quarter.
According to Sebi data, the bank filed the prospectus for the issue on 25 January.
Last month, Central Bank of India executive director R. K. Dubey had said the lender would come out with a rights issue of Rs2,500 crore and is in the process of finalising the date for the launch of the issue, which will hit the market in the January-March quarter.
The government had approved the rights issue of the lender in June last year. ICICI Securities is the lead manager for the issue.
The government holds an 80.2% stake in the bank and therefore, it will have to subscribe to an equal percentage in the proposed rights issue to retain its present level of ownership.
Central Bank of India reported a 32% increase in net profit for the third quarter ended 31 December, 2010, to Rs403.52 crore on the back of a 96% rise in interest income.
The bank’s credit growth stood at 28% for the quarter as against a mere 4% rise in overall deposits.
Shares of Central Bank of India were trading at Rs172.15 on the BSE today, up 0.23% vis-a-vis the previous close.
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First Published: Tue, Feb 01 2011. 04 08 PM IST
More Topics: Central Bank | Sebi | Right issue | Q3 | Profit |