Credit rating agency, ICRA has reaffirmed the outstanding rating of ‘AAA’ with a stable outlook assigned earlier to the Rs 1000 crore Lower Tier II bonds of Corporation Bank.
The ratings factor in the bank’s majority sovereign ownership, expected equity capital infusion of Rs 450 crore from Government of India (GoI) in H2FY14, competitive operating cost structure and established franchise in South India.
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.
