Centurion Bank plans Rs 91 cr rights issue

Centurion Bank will come up with a rights issue worth Rs 91 crore (Rs 910 million) on July 23, which would raise its capital base to Rs 288 crore (Rs 2,880 million) by September end this fiscal.

"The record date for the rights issue of Rs 91 crore has been set at July 23, 2004 subject to necessary approvals. It will be completed well before September 30," a Centurion Bank official told PTI.

Promoters Rana Talwar's Sabre Capital, Bank Muscat and others have infused Rs 154 crore (Rs 1,540 million) equity in the erstwhile ailing bank.

The bank, which came out of red in the first quarter of this fiscal, also raised its Tier-II capital by Rs 43 crore (Rs 430 million) through subordinated debt.

After the proposed rights issue, the bank will have an additional capital of Rs 288 crore, the official said, adding the capital adequacy ratio will then increase to more than the Reserve Bank of India stipulated 9 per cent.

The bank has embarked on aggressive growth plans through opening of 14 more branches, sources said, adding RBI has already given permission for the expansion.

Centurion Bank will have presence in 59 cities through about 97 branches.

The bank also plans to come up with housing loans, credit cards and bancassurance ties with insurers.

Centurion Bank turned around in the first quarter of this fiscal with a net profit of Rs 3.15 crore (Rs 31.5 million).
 
The private sector bank, which has cleaned its books by making heavy provisions for bad assets, posted a net loss of Rs 105.14 crore (Rs 1,051.4 million) for the year ended March 31, 2004 as against a loss of Rs 25.36 crore (Rs 253.6 million) in FY03.