Search
Central Bank of India gains after strategic tie-ups to expand loan portfolio
September 01, 2023
Share of Central Bank of India gained nearly 2 per cent in trade on Wednesday after the public sector lender announced strategic tie ups with IKF Home Finance Limited and Samunnati Financial Intermediation & Services Private Limited (SFISPL) for expanding its loan portfolio.
The stock of Central Bank of India opened 1.71 per cent higher at ₹35.71 on BSE compared to its previous close of ₹35.11. At 12: 56 PM, the shares were trading 1.1 per cent higher on BSE at ₹35.50 apiece.
On the NSE, the shares witnessed a similar rise and were trading 1.14 per cent higher at ₹35.5.
With a net profit of ₹1,582.20 crore in FY 22-23, the Central Bank of India is keen to increase its earnings. The bank posted a net profit of ₹418.43 crore in the June 2023 quarter, a significant dip from the ₹571.03 crore it earned in the April quarter.
The public sector lender has also recently launched BASEL-III Compliant Tier-II bonds for raising ₹1,500 crore. This includes a green-shoe option of ₹1,000 crore and a base size of ₹500 crore. The bonds will be issued on a private placement basis. The bonds will be allotted today, August 30, and will mature in 10 years.
The public sector lender, in two separate filings, announced that it was co-ordinating with IKF Home Finance Limited for MSME and home loans and Samunnati Financial Intermediation & Services Private Limited for agricultural and MSME loans. The loans will be offered at competitive rates. The co-lending arrangements will help the Central Bank of India expand its portfolio.
Important Links:
- 4-IN-1 Professional Diploma in Banking, Financial Services & Insurance (PDBFSI): https://tscfm.org/courses/4-in-1-professional-diploma-in-banking-financial-services-insurance-pdbfsi/