Canara Bank to seek shareholders’ nod for raising Rs 5,000 cr

Canara Bank. (Photo: Twitter/@canarabanktweet)

New Delhi, (Asian independent) Canara Bank will seek its shareholders’ approval, in its upcoming Annual General Meeting on August 10, to raise Rs 5,000 crore through various modes including rights issue, qualified institutional placement among other available options.

In its annual report for the year 2019-20, the bank said that the current equity capital of the bank is Rs 1,030.23 crore and the Capital Adequacy Ratio of the bank as on March 31, is 13.65 per cent, which is well above the 10.875 per cent stipulated by the Reserve Bank of India.

However, in view of certain expansion plans of the bank, the implementation of BASEL III norms, and consequent capital charge, there is a need to increase the capital to further strengthen the Capital Adequacy Ratio, it said.

“In order to shore the Bank’s Tier I capital, the Board of Directors of the Bank have decided to raise Capital to the extent of Rs 5,000 crores (including premium) through various modes including follow-on issue, right issue, preferential Issue to government and financial institutions, qualified institutional placement and other permitted mode of raising capital,” it said

Several banks, both private and public, are looking at raising funds of late.

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