Central Bank gains 3% on approval for preferential issue

Public sector lender Central Bank of India gained as much as 2.7 percent to touch an intraday high of Rs 83.85 recently after the board’s approval for preferential issue.

The board of directors of the bank at its meeting held on December 21, 2012, have approved issuance of equity shares on preferential basis in favour of Government of India and/or other interested and eligible shareholder(s).

Recently after Banking Amendment Bill getting passed in Lok Sabha, Finance Minister P Chidambaram had expressed the commitment of the government to infuse Rs 15,000 crore into public sector banks in the current financial year and retain their basic character.