Corporation Bank gains after board accords approval for capital infusion by GoI

Corporation Bank gained 2.45% to Rs 48.15 at 9:30 IST on BSE after the bank said that its board yesterday, 24 August 2015 has accorded its approval for the infusion of capital of Rs 857 crore by Government of India.

The bank made announcement after market hours yesterday, 24 August 2015.

Meanwhile, the S&P BSE Sensex was up 300.21 points or 1.17% at 26,041.77.

On BSE, so far 4,245 shares were traded in the counter as against average daily volume of 39,878 shares in the past one quarter.

Shares of PSU bank hit a high of Rs 50 and a low of Rs 48.10 so far during the day. The stock had hit a 52-week high of Rs 78.90 on 22 January 2015. The stock had hit a 52-week low of Rs 46.50 yesterday, 24 August 2015.

Corporation Bank said that the board of the bank yesterday, 24 August 2015 has also accorded its approval for convening an extraordinary general meeting of the shareholders of the bank on 22 September 2015, for seeking its approval for the said infusion of capital by the Government of India by way of preferential issue of equity in favour of Government of India. The bank is in the process of taking necessary steps/approvals for raising the said amount. The Ministry of Finance, Department of Financial Services, Government of India, vide its letter dated 19 August 2015, had communicated its decision to infuse capital funds to the tune of Rs 857 crore in the bank by way of preferential issue of equity in favour of Government of India.

As per the shareholding pattern, the Government of India holds 63.33% stake in the bank as at 30 June 2015.

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