Canara Bank rose 1.12% to Rs 316.50 at 10:10 Ist on BSE after the bank said that the majority of the directors approved to raise additional Tier-I capital funds through BASEL-III compliant additional Tier-I perpetual bonds.The announcement was made after market hours on Friday, 14 October 2016.
Meanwhile, the S&P BSE Sensex was up 40.32 points or 0.15% at 27,714.74.
On BSE, so far 74,834 shares were traded in the counter as against average daily volume of 4.32 lakh shares in the past one quarter. The stock hit a high of Rs 316.95 and a low of Rs 312.30 so far during the day. The stock had hit a 52-week high of Rs 339.20 on 5 October 2016. The stock had hit a 52-week low of Rs 156.20 on 29 February 2016. The stock had outperformed the market over the past one month till 14 October 2016, rising 0.53% compared with Sensex's 2.46% fall. The scrip had also outperformed the market in past one quarter, surging 22.57% as against Sensex's 0.96% decline.
The large-cap PSU bank has equity capital of Rs 542.99 crore. Face value per share is Rs 10.
Canara Bank said that the majority of the directors have taken note of the contents and the recommendations of the bank in the circular note and consented to raise additional Tier-I capital funds through BASEL-III compliant additional Tier-I perpetual bonds in rupee terms domestically for an amount not exceeding Rs 2500 crore in single tranche or in tranches depending on the market conditions to maintain healthy CRAR during the current financial year. A bond committee will be constituted to determine the structure of the issue size, tenor, coupon, timing of the issue, date of allotment, listing and other matters connected to the issue.
On 6 October 2016, the bank had proposed to circulate a note among the directors of the board of the bank in respect of raising additional funds through BASEL-III compliant additional Tier-I bonds in rupee terms.
Canara Bank's net profit fell 52.2% to Rs 228.95 crore on 3.8% decline in total income to Rs 11786.35 crore in Q1 June 2016 over Q1 June 2015.
The Government of India held 66.3% stake in Canara Bank as per the shareholding pattern as on 30 June 2016.
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