Canara Bank gains after picking stake in Brickwork Ratings

The announcement was made during trading hours today, 9 July 2013.

Meanwhile, the S&P BSE Sensex was up 77.64 points or 0.4% at 19,402.41.

On BSE, 40,000 shares were traded in the counter as against average daily volume of 98,604 shares in the past one quarter.

The stock hit a high of Rs 354.90 and a low of Rs 349 so far during the day. The stock had hit a 52-week high of Rs 550 on 14 January 2013. The stock had hit a 52-week low of Rs 306 on 30 August 2012.

The stock had underperformed the market over the past one month till 8 July 2013, sliding 12.94% compared with the Sensex's 0.54% fall. The scrip had also underperformed the market in past one quarter, declining 11.59% as against Sensex's 4.81% rise.

The large-cap state-run bank has equity capital of Rs 443 crore. Face value per share is Rs 10.

Commenting on the strategic partnership with Brickwork Ratings, Mr. R K Dubey, CMD, Canara Bank said, "Brickwork and Canara Bank are both Bengaluru based entities. Canara Bank and Brickwork would collaborate in various activities related to banking and credit rating. The strategic investment would help take up joint activities on risk management, training, research, financial inclusion, credit rating models, events, conferences etc".

Mr. Vivek Kulkarn, MD, Brickwork Ratings said, "We are very excited to be partnering with a hundred year old Bank from Karnataka. Brickwork is committed to make a difference in the ratings industry and emphasizes research, training and financial literacy".

Brickwork Ratings is an Indian credit ratings agency. It offers bank loan ratings for large, medium and small companies.

Canara Bank's net profit declined 12.5% to Rs 725.38 crore on 4.8% growth in total income to Rs 9471.57 crore in Q4 March 2013 over Q4 March 2012.

The Government of India (GoI) holds 67.72% stake in Canara Bank (as per the shareholding pattern as on 30 June 2013).

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