Central Bank of India plans rights issue

Public sector lender Central Bank of India was planning a Rs 2,500-crore rights issue in the January-March quarter, the bank’s top boss said today.

“It (the issue) will happen sometime in the next quarter,” Central Bank of India CMD S Sridhar said on the sidelines of a seminar organised by the finance ministry here.

The government had approved the rights issue in June this year. The bank is now awaiting the Reserve Bank of India’s (RBI’s )approval.

Meanwhile, it has appointed six merchant bankers for the issue.

At present, the government holds 80.2 per cent stake in the bank. It, therefore, will have to subscribe an equal amount in the proposed rights issue when it hits the market.

The bank’s shares were trading at Rs 199.45, up 5.33 per cent on the Bombay Stock Exchange.