Canara Bank to get Rs 500-crore capital infusion from government

Canara Bank will receive capital infusion of Rs 500 crore from the government, according to a top bank official.

 

"There is no pressure for capital on us (as of now). We have been sanctioned Rs 500 crore capital by government. On 30th (this month) we have EGM. We will have to pass a resolution for that," Canara Bank chairman and managing director R K Dubey told reporters on the sidelines of an event on Wednesday.

 

Mr Dubey also said the public sector lender may raise Rs 2,500 crore from the market through various modes if it gets the amount at "good price".

 

He said as the government wanted the bank to focus more on retail credit, the capital infusion may go up to Rs 600 crore.

 

On the proposed Rs 2,500-crore fund-raising, he said though the board has given the mandate, they will raise the amount only when the yield is good.

 

"We are not going for QIP. We may go for bonds. We have not yet decided...We will go wherever yield is more. Our committee will work with investors and foreign collaborators. It could a mix of instruments. Whatever is the best option we will go for that," he said.

 

"If we get prices we will do it in the current year otherwise we will do it in the first or second quarter of the next fiscal."

 

On the bank's growth in current fiscal year, Mr Dubey said they expected an around 20 per cent growth in the credit off-take and 17 to 18 per cent growth in deposits.

 

Mr Dubey also informed that the bank was working "aggressively" on expansion of network of branches - both domestic and international.

 

Canara Bank has so far opened over 700 branches in the current fiscal year.

 

The bank has also approached regulators of some countries for their permission to start operations there, Mr Dubey added.