Central Bank ends with 13% premium

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Central Bank of India , public sector bank, has debuted with 29% premium at Rs 131.80 and surged to a high of Rs 135 on the NSE in the beginning trade. But weak sentiment in markets and heavy selling spree on banking stocks, due to which BSE Bankex fell 4.41%, have put some pressure on the stock, it touched a low of Rs 114.05.

It has ended the day at Rs 115.30, up 13.04%, with volumes of 5,87,77,319 shares on the NSE and the turnover was at Rs 740 crore.

On the BSE, the share closed at Rs 115.40, with volumes of 2,43,85,904 shares. It has touched a high/low of Rs 133.25 and Rs 114, respectively.

In an interview with CNBC-TV18, H A Daruwala, Chairperson and MD, Central Bank , said deposit and credit growth for FY08 is seen at 20% and 24% respectively. The bank will improve its net interest margins in FY08, she said, adding that NIMs are seen higher this fiscal from the current 3.16%.

According to Daruwala, fee based and banker products will increase. The bank is targeting net NPAs below 1% for FY08 as compared to the current 1.7%, she added.

The company had come out with an initial public offering (IPO) of 80,000,000 equity shares of Rs 10 each for cash at a price to be decided through a 100% book building process and raised Rs 816 crore from that issue at Rs 102, higher end of the band. The issue was subscribed over 62.07 times.