LIC to buy addtnl stake in Central Bank of India for Rs 540cr

Tags: News
State-owned Central Bank of India proposes to raise an estimated Rs 540 crore by selling stake on preferential basis to Life Insurance Corporation (LIC).

The board approved raising of additional capital by issuance and allotment of, up to 7,10,75,753 equity shares of the face value of Rs 10 each to Life Insurance Corporation of India on preferential basis, Central Bank of India said in a BSE filing.

Shares of the bank today closed at Rs 76.45 apiece. At this rate, the stake proposed to be bought by LIC would be worth Rs 543 crore.

LIC currently holds 7,34,20,914 shares, or 5.44 per cent stake, in Central Bank of India.

The price for preferential allotment may be determined as per SEBI Regulations, it said, adding, an Extra-Ordinary General Meeting of shareholders will be held on July 15, 2014 to pass this resolution.

The Government of India (GoI) currently holds 88.63 per cent stake in Central Bank of India.

The bank recorded a 4 per cent decline in net profit to Rs 162.44 crore in the fourth quarter ended March 31.

It had posted a profit of Rs 169.15 crore in the January-March quarter of 2012-13.

Total income increased to Rs 6,961.67 crore from Rs 6,403.57 crore.

For 2013-14, the bank made a loss of Rs 1,262.84 crore, compared with a profit of Rs 1,014.96 crore in the previous financial year, due to higher provisioning.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Faith is the opium of the masses, so Indians get addicted

    India is a nation of 1.27 billion. Let that number sink in, with all its zeroes. That’s a lot of people.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

M S Swaminathan

Public good research in agriculture

Public good research in agriculture is designed to promote risk ...

Zehra Naqvi

To hell and back

Here is a book that makes you wish there were ...

Bubbles Sabharwal

When your real & reel life heroes are the same

ALL the world’s a stage and we all are merely ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture