State-owned Corporation Bank on Monday said lIC will infuse Rs143 crore into the bank by way of preferential equity. The capital infusion into the bank by lIC will be by way of issue of equity shares on preferential basis to the country's largest insurer, the bank said in a BSE filing.
“The Company (Bank) have received a letter dated September 11, 2015 from lIC of India expressing their intention to infuse capital to the extent of Rs143 crore into the capital funds of the Bank,” it said. The bank further said it "proposes to raise funds by way of preferential issue of upto 2,81,60,693 equity shares at a price of Rs50.78 per share (including premium).”
About the objective of proposed preferential issue to lIC, it said the bank is growing at an average growth rate of around 20 per cent over the last many years and it needs funds to expand business. “In order to meet the growing requirement of funds for expanding the business by way of long-term resources and for general lending purposes as may be decided by the Board as also to comply with BASEl-III requirements relating to capital adequacy,” it said.