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Tuesday, February 24, 2015

Syndicate Bank to issue 3.74 cr preference shares to Govt

Syndicate Bank has decided to issue 3.747 crore shares of Rs. 10 each on a preferential basis to the Government of India for capital infusion of about Rs. 460 crore.

The bank has fixed a minimum issue price of Rs. 122.75 per share in line with SEBI regulations for the proposed issue of the preferential shares. Based on this price, the number of shares to be issued to the Government of India works out to 3,74,74,541, the bank said in a note to the stock exchanges.

As a result, the Government of India's stake in the Manipal-headquartered bank will go up to 69.24 per cent from the current 67.39 per cent.

The Syndicate Bank scrip was trading 1.17 per cent lower at Rs. 118.65 in intra-day trade on the BSE on Monday.

The bank recently reported a 20 per cent drop in net profit for the December quarter on lower net interest income and higher tax expenses. Net profit for the December quarter stood at Rs. 304.99 crore as against Rs. 379.76 crore in the corresponding last quarter. The net interest income, the difference between the interest earned and expended for the December quarter, fell marginally to Rs. 1,317.68 crore against the corresponding last quarter's Rs. 1,358.53 crore.

Source : Thehindubusinessline


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