Oman 'Bank Muscat' invests Rs. 30 cr. in Centurion Bank's right issue


Dubai, Aug. 24, 2004
PTI

Oman's largest bank BankMuscat, today picked up 75 million shares worth Rs 30 crores in Centurion Bank's rights issue on the first day itself.

The foreign bank, which has 33 per cent holding in the Centurion Bank, bought the shares at Rs 4.0 per share soon after the Rs 90.8 crore rights issue opened today.

"We are glad to confirm that we have fully exercised our rights option on the opening day of the Centurion Bank's rights issue," BankMuscat Chief Executive Abdul Razak Ali Issa, said in a statement here.

Issa said the funds have already been transferred to the Mumbai-based bank.

He had earlier said the decision to fully subscribe to the rights issue was in keeping with its long-term commitment to India and the confidence it has in the new management of Centurion Bank.

"The bank has shown excellent progress over the past year and with the Reserve Bank recently granting it permission to further expand its presence in the country, we are confident that the bank is on a positive growth path and will have much to offer to the discerning Indian retail consumer in the days to come," Ali had said.

BankMuscat had recently opened credit lines worth Rs 188 crores (USD 40 million) to assist the Centurion Bank in its inter-bank and trade finance business.

The foreign bank had also recently signed an MoU with the Centurion Bank to jointly explore opportunities in the fast growing NRI business segment.