UPDATE 2-Chile Corpbanca OKs $900 million capital increase

* Shareholders agree to raise bank's capital by 15 percent

* Move comes after stake sale talks with Banco do Brasil (Adds bank comments and details of capital increase)

By Antonio de la Jara

SANTIAGO, Jan 27 (Reuters) - Shareholders of Chile's Corpbanca COB.SN on Thursday approved a capital increase for about $900 million to expand the business of the country's fifth largest bank.

The capital increase comes only months after the bank confirmed that it held informal talks with Banco do Brasil (BBAS3.SA) to sell a 10 percent stake to the Brazilian state-controlled bank.

It was unclear if Banco do Brasil, Latin America's largest bank by assets, planned to participate in the transaction. Corpbanca has said the increase was not related to talks with Banco do Brasil, but said the financial group and other investors may participate. [ID:nN30116046]

"We think this is a good time to issue capital because the country is seen growing in the next four years," Corpbanca's general manager Mario Chamorro told reporters.

He added that he expects the capital increase to be completed in the first half of this year.

Corpbanca has joined Banco de Chile CHI.SN, the country's No. 2 bank, in raising capital as financial institutions bet on strong economic growth in the world's top copper producer as the value of the metal soars.

Chile's top bank, Santander Chile STG.SN, plans to increase loans up to $5.5 billion in 2011 to lure clients. [ID:nN22108499]

Chile's banking system profit rose 37.5 percent in January to November, compared with the same period a year earlier.

Corpbanca will increase capital by issuing more than 40 billion shares, which represents about 15 percent of its equity, and capitalize some profits.

Shares of Corpbanca have risen more than 6 percent to 8.25 pesos since the bank confirmed in late September that it held talks with Banco do Brasil. ($1 = 485 Chilean pesos) (Editing by Alonso Soto. Editing by Lisa Von Ahn and Robert MacMillan)