Government of India (GOI) has decided to infuse equity capital of Rs 947 crore in Canara Bank. The board of the bank at a meeting held on August 31, 2015 has approved the proposal of issuing equity shares on preferential basis to the government in lieu of the capital infusion. Further, the board has also approved to conduct the Extraordinary General Meeting of the Bank on September 29, 2015 for obtaining the consent of the shareholders to make preferential allotment to the GOI. The Bank is taking all necessary steps / approvals in this regard.
The Bank has fixed a minimum Issue Price at Rs 340.72 calculated in accordance with the Regulation 76 (1) of SEBI-ICDR Regulations for the proposed issue of equity shares to the Government of India by way of Preferential Allotment. Based on the Issue Price of Rs 340.72, number of shares to be issued and allotted to Government of India works out to 27,794,083.
Canara bank has reported 40.65% fall in its net profit at Rs 478.84 crore for first quarter ended June 30, 2015 as compared to Rs 806.86 crore for the same quarter in the previous year. However, total income of the bank has increased by 4.47% at Rs 12252.64 crore for quarter under review as compared to Rs 11728.01 crore for the quarter ended June 30, 2014.
| Company Name | CMP |
|---|---|
| SBI | 1111.35 |
| PNB | 114.90 |
| Canara Bank | 144.30 |
| Bank Of Baroda | 284.50 |
| Union Bank Of India | 192.00 |
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