Corporation Bank gains after announcing lending rates based on marginal cost of funds

Corporation Bank rose 2.17% to Rs 42.45 at 11:08 IST on BSE after the bank announced lending rates based on marginal cost of funds to be effective from 1 October 2016.

The announcement was made after market hours yesterday, 29 September 2016.

Meanwhile, the S&P BSE Sensex was down 8.01 points or 0.03% at 27,819.52

On BSE, so far 15,000 shares were traded in the counter as against average daily volume of 78,680 shares in the past one quarter. The stock hit a high of Rs 42.55 and a low of Rs 40.35 so far during the day. The stock had hit a 52-week low of Rs 30.75 on 25 February 2016. The stock had hit a 52-week high of Rs 47.80 on 9 September 2016. The stock had underperformed the market over the past 30 days till 29 September 2016, falling 2.92% compared with 2.20% decline in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.85% as against Sensex's 2.51% rise.

The mid-cap state-run bank has equity capital of Rs 204.50 crore. Face value per share is Rs 2.

Corporation Bank's Marginal Cost of Funds based Lending Rate (MCLR) for overnight loans will be 9.05%, for one month will be 9.15% and for three months will be 9.30%. The MCLR on 6-month loans will be 9.40% and for one-year loans the rate would be 9.50%, the bank said.

Corporation Bank's net profit dropped 82.41% to Rs 35.92 crore on 1.75% fall in total income to Rs 5241.12 crore in Q1 June 2016 over Q1 June 2015.

The Government of India held 67.2% stake in Corporation Bank as per the shareholding pattern as on 30 June 2016.

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