Have sold loans worth Rs 10 cr to ARCs: City Union Bank

Written By Unknown on Kamis, 08 Mei 2014 | 15.46

The Tamil Nadu-based bank has got the Reserve Bank of India's permission to raise foreign institutional investor (FII) limit to 35 percent.

Last March, FIIs were banned from trading in the City Union Bank counter as the 24 percent ceiling was getting breached at that point of time.

N Kamakodi

MD and CEO

City Union Bank

City Union Bank  has sold around Rs 10 crore of loans to asset reconstruction companies, MD and CEO N Kamakodi said in an interview to CNBC-TV18. He said the bank's track record of loan recovery has been good.

The Tamil Nadu-based bank has got the Reserve Bank of India's permission to raise foreign institutional investor (FII) limit to 35 percent. So far, no FII has approached the bank to pick up a stake, Kamakodi said. The bank's net interest margin is 3.5 percent.

Below is the transcript of N Kamakodi's interview to CNBC-TV18's Ekta Batra and Reema Tendulkar

Reema: There was a big block deal of 2.3 crore shares which exchange today. Are you aware of who the buyers and the sellers are in this transaction?

A: We haven't got the information yet from our resource, we will get it only after the end of today's trading or when we get the knowledge of settlement.

Ekta: Let us focus on the news with regards to the RBI lifting a curb of the Foreign Institutional Investors (FIIs) investment limit in City Union Bank. Can you take us through what the investment limit now stands at, how much of it is exhausted and how much of a gap or ceiling do you have remaining?

A: Last year in March the FIIs were banned from trading in the City Union Bank counter because the 24 percent ceiling was getting breached at that point of time. In August 2013 during our annual general meeting shareholders approved for increase in that limit to 35 percent which we applied to Reserve Bank of India (RBI) for further approval. So after the due process we just got the approval from RBI that we can increase the FII, FDI and all our foreign institutions limits up to 35 percent and there is now a gap of about 10 percent incremental exposure the FIIs can take.

Reema: So currently FIIs have about 25 percent stake in the bank?

A: Yes FII, FDI all other foreign institutions put together have about 24-25 percent. Now the institutions will have option to increase it up to 35 percent of course with the ceiling that nobody can take more than 5 percent without specific approval.

City Union Bank stock price

On May 08, 2014, at 14:13 hrs City Union Bank was quoting at Rs 64.30, up Rs 2.75, or 4.47 percent. The 52-week high of the share was Rs 64.85 and the 52-week low was Rs 37.95.


The company's trailing 12-month (TTM) EPS was at Rs 6.37 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 10.09. The latest book value of the company is Rs 30.30 per share. At current value, the price-to-book value of the company is 2.12.


Anda sedang membaca artikel tentang

Have sold loans worth Rs 10 cr to ARCs: City Union Bank

Dengan url

https://kesehatanda.blogspot.com/2014/05/have-sold-loans-worth-rs-10-cr-to-arcs.html

Anda boleh menyebar luaskannya atau mengcopy paste-nya

Have sold loans worth Rs 10 cr to ARCs: City Union Bank

namun jangan lupa untuk meletakkan link

Have sold loans worth Rs 10 cr to ARCs: City Union Bank

sebagai sumbernya

0 komentar:

Posting Komentar

techieblogger.com Techie Blogger Techie Blogger