Central Bank to float IPO

Notwithstanding the high volatility on the stock markets and the antipathy of Left parties on banks diluting the government holding, state-owned Central Bank of India Central Bank is planning to access the capital market with an initial public offering IPO in the second quarter of 2004-05.

8216;8216;We are working on plans for public issue in the first half of the current fiscal and we are in process of seeking the Centre8217;s approval for the proposed public offer,8217;8217; Central Bank chairman and managing director Dalbir Singh said.

The bank would raise resources by issuing fresh equity shares which would be used to fund future growth plans, he said, not giving any other details of the issue. Currently, the government holds 100 pc stake in the bank, which would be diluted after the IPO, he said. The bank has reported a 102 pc rise in net profit at Rs 618.11 crore for fiscal ended March 31, 2004, compared to Rs 305.52 crore posted in the previous financial year.