Mumbai, Feb 13: Centurion Bank on Tuesday announced its rights issue for Rs 128.08 crore at Rs 12 per share. The bank will issue 10,67,29,134 equity shares of Rs 10 each (face value) with a premium of Rs 2 per share. The issue will be of the ratio of seven equity shares for every 10 equity shares held on the record date at January 27, 2001.The bank's rights offer will open on February 14 and close on March 15. The lead manager to the issue will be SBI Capital Markets Ltd with MCS Ltd as the registrar.
"We are offering the issue to improve the bank's capital base from the current level of Rs 152.47 crore to Rs 259.20 crore. This will remove the pressure on the capital adequacy front," Centurion Bank managing director MJ Subbaiah said.The bank was set up in 1994 with a capital base of Rs 101.25 crore. The promoters of the bank are TCFC Finance Ltd and Keppel Tatlee Bank through Kephinance Investment Pvt Ltd of Mauritius.
Centurion Bank's capital adequacy ratio (CAR) stood at 9.31 per cent as on March 2000. The bank's CAR will improve to 12.8 per cent after the issue has been subscribed to. Net non-performing assets to net advances stood at 2.70 per cent as of March 31, 2000. The enhanced capital would be used towards growth of the bank's business. The bank has a current network of 45 branches and plans to add 15 more branches to its network by end-March 2001.
In terms of its overall size, the total assets of the bank increased to Rs 5,224 crore at end-March 2000, from Rs 3,104 crore in the previous fiscal.
Deposits grew by 80.62 per cent to Rs 3,867 crore, while advances grew by 36.30 per cent to Rs 1,840 crore during the same period.
Total income stood at Rs 486.61 crore with net profit at Rs 33.18 crore on December 2000.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
