Two banks to raise Rs 4,500 cr via share sales

Canara Bank plans to use the share sale proceeds to boost its capital base as demand for credit is likely to pick up. A part of the fund will be used for its expansion plans.

Central Bank of India has fixed March 18 as record date for the purpose of ascertaining shareholders entitled for rights issue.

The bank which has proposed to issue equity shares on a rights basis in the ratio of 3 scrips for every 5 shares held,is proposing to offer 24,24,84,876 shares of face value of Rs 10 each in addition to the present,paid up capital of 40,41,41,460 equity shares which is considered for determining the number of shares in the rights issue.

On application,Rs 10 per equity share will go towards share capital and Rs 93 per share will go towards premium account.

As the government holds 80.2 per cent in the Central Bank of India,it will make a capital infusion of Rs 2,016 crore by subscribing to the rights issue. The bank is likely to raise money by this month-end. The rights issue of the bank is a part of recapitalisation package announced by the government last year.