Corporation Bank shares gained as much as 4 per cent on Tuesday after the bank informed stock exchanges that LIC has expressed its intention to infuse Rs 143 crore capital in the bank. (Photo: PTI)
Corporation Bank shares gained as much as 4 per cent on Tuesday after the bank informed stock exchanges that Life insurance Corporation (LIC) has expressed its intention to infuse Rs 143 crore capital in the bank.
At 12.28 pm, Corporation Bank shares were trading 2.03 per cent higher at Rs 47.75. It opened at Rs 47.85 and had touched a high and low of Rs 48.70 and Rs 47.65, in trade so far. Sensex was down 111.26 points at 25,745.44.
In a BSE filing, the Bank said,”The Company have received a letter dated September 11, 2015 from Life insurance Corporation of India expressing their intention to infuse capital to the extent of Rs 143 crore into the capital funds of the Bank, by way of issue of equity shares on preferential basis to Life Insurance Corporation of India and to place the same in the ensuing extraordinary general meeting.”
Corporation Bank will hold an extraordinary general meeting on September 28 to decide on the same.
The state-run lender’s stock has fallen 28 per cent this year along with other state-run banks on concerns of increasing bad loans.
For the quarter ended June 2015, the bank posted net profit of Rs 204.26 crore, down 11.75 per cent, against Rs 231.47 crore in the corresponding quarter a year ago.
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