Canara Bank gains after announcing capital raising plans

Canara Bank rose 0.47% to Rs 193.85 at 12:25 IST on BSE after the bank's board of directors permitted the bank to raise capital of Rs 3000 crore through issue of Basel-III compliant Tier II bonds by way of private placement.

The announcement was made after market hours yesterday, 21 March 2016.

Meanwhile, the S&P BSE Sensex was down 42.45 points or 0.17% at 25,242.92.

On BSE, so far 83,248 shares were traded in the counter as against average daily volume of 3.51 lakh shares in the past one quarter. The stock hit a high of Rs 194.50 and a low of Rs 192.25 so far during the day. The stock had hit a 52-week high of Rs 411.45 on 15 April 2015. 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 21 March 2016, gaining 12.41% compared with Sensex's 6.65% gains. The scrip had, however, underperformed the market in past one quarter, declining 20.76% as against Sensex's 1.75% fall.

The large-cap bank has equity capital of Rs 542.99 crore. Face value per share is Rs 10.

Canara Bank announced that the board of directors of the bank at a meeting held yesterday, 21 March 2016, permitted the bank to raise capital of Rs 3000 crore through issue of Basel-III compliant Tier II bonds by way of private placement at a coupon rate as decided by the bond committee of the bank to support the asset growth and maintain comfortable level of CRAR.

Canara Bank's net profit fell 87% to Rs 84.97 crore on 1.4% decline in total income to Rs 12050.63 crore in Q3 December 2015 over Q3 December 2014.

The Government of India held 66.3% stake in Canara Bank as per the shareholding pattern as on 31 December 2015.

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