Stock Market

Central Bank sells 4% stake in Clearing Corp for Rs 118 cr

   Download Android App    Share in      FullScreen   CheckVideos

MUMBAI: Central Bank of India sold its 4% stake in Clearing Corporation of India (CCIL) for about Rs 118 crore early this week, according to people aware of the deal.

ICICI Lombard General Insurance has acquired the stake from the struggling public sector bank, they said. Central Bank is currently under the Reserve Bank of India’s prompt corrective action (PCA) framework, which entails strict curbs on business growth and capital consumption. The bank had earlier announced its intention to sell its non-core assets to raise funds.

It is planning to raise another Rs 270 crore by raising equity capital through employee stock option. The bank’s shares lost 2.62% on the Bombay Stock Exchange in Friday’s trade to end the session at Rs 33.50.

Its stock has declined 54% in the past one year. For nine months ended December 31, 2018, the bank reported a loss of Rs 3,164 crore, higher than a loss of Rs 2,991 crore posted for the year-ago period. Queries emailed by ET to Central Bank of India and ICICI Lombard did not elicit any response till press time. In March 2018, Central Bank had sold 3.11% stake in JM Financial Asset Reconstruction Company.

In November, Bank of Baroda sold its 4% stake in CCIL to HDFC Bank for an aggregate sum of Rs 124 crore. Early last year, ICICI Bank had acquired an additional 4.4% stake in CCIL for Rs 143 crore. ICICI Bank and HDFC Bank own 9.9% and 9% stake in CCIL, respectively. A single shareholder cannot hold more than 10% stake in any clearing corporation and shareholder together with the shareholding of its holding, subsidiary or associate companies cannot exceed 15% of the paid-up equity, according to the Securities and Exchange Board of India regulations. CCIL, incorporated in 2001, is engaged in the business of clearing and settlement services for transactions in the money market, government securities market and foreign exchange market, among other related financial activities. At the end of March 2018, SBI held 16.8% stake in CCIL while LIC and STCI Finance held 10% stake each.

IDBI Bank reduced its stake to 2.5% from 7.5% between March 2017 and March 2018.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21