CARE has reaffirmed ‘AAA’ ratings to Corporation Bank’s Lower Tier II Bonds worth of Rs 500 crore, Upper Tier II Bonds worth of Rs 2850 crore, Perpetual Bonds worth of Rs 737.50 crore.
The rating factors in capital support and the majority ownership of Corporation Bank by the Government of India (GoI), adequate capitalization levels, healthy asset quality and strong regional franchise of the bank. The rating also factors in the stable growth in the assets, moderate resource profile with a declining proportion of low-cost CASA deposits.
Corporation Bank is a Mangalore-based mid-sized public sector bank which was established in 1906. Government of India is the majority shareholder holding 59.82% stake in the bank. As on March 31, 2013, the bank has 1707 branches and 1425 ATMs.
