Stock analyst Hunny Tarika, Fairwealth Securities has maintained 'Buy' rating on Corporation Bank to achieve a short term target of Rs 340.

Mr. Tarika said that interested investors can buy the stock above Rs 312 with a stop loss of Rs 299.90.

Today (June 10), the shares of the company opened at Rs 320 on BSE on the Bombay Stock Exchange. Current EPS & P/E ratio stood at 62.24 and 5.04 respectively. The share price has seen a 52-week high of Rs 330 and a low of Rs 130 on BSE.

Corporation Bank said it has decided to raise Rs 5 billion from bonds to fortify its capital adequacy ratio (CAR).

The fund would be lifted from unsecured non-convertible subordinated upper tier II bonds to be issued on May 28.

The bond will carry an annual coupon rate of 8.37% during the initial 10 years and step up coupon rate of 8.87% annually for last 5 years.

For the quarter ended March 2009, Corporation Bank disclosed a 26.70% increase in its standalone net profit to Rs 2,604.91 million from Rs 2,056 million in the same quarter last year.

Interest earned for the quarter rose 36.13% to Rs 17,063.85 million, while total income for the quarter jumped 50.17% to Rs 21,996.40 million, when compared with the prior year period.

During the quarter, it reported earnings of Rs 18.16 a share, a rise of 26.72% over the prior year period.