Corporation Bank has received the amount of Rs 9,086 crore towards contribution of the Government of India in the preferential allotment of equity shares of the Bank as Government's investment and the same has been credited to Share Application Money Pending Allotment Account.
This amount has been utilised to make loan loss provision in order to bring down the Net NPA ratio below the threshold under Prompt Corrective Action Framework.
Corporation Bank is a Mangalore-based mid-sized public sector bank which was established in 1906.