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Central Bank plans to raise Rs.2,500 crore

business Updated: Jul 15, 2010 17:42 IST

IANS
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Public sector Central Bank of India plans to raise Rs.2,500 crore as tier-I capital (core capital including equity capital and disclosed reserves) in the current fiscal (2010-11), a top bank official said in Kolkata on Thursday.

"Our evaluation for the fiscal to support a growth of 25 percent in loan assets is we will need fresh capital of about Rs.2,500 crore as tier-I capital," S. Sridhar, chairman and managing director of the bank. told reporters on the sidelines of a banking conclave organised by FICCI.

This would push up tier I capital of the bank to 8 percent from 6.4 percent now, he said.
At the beginning of the fiscal the bank got Rs.250 crore infusion as tier I capital in the form of Innovative Perpetual Debt Bonds (IPDI).

The bank reported capital adequacy ratio (CAR) of 12.24 percent on March 31, 2010.

After all the capital infusions, the CAR of the bank is expected to be 13 percent by the end of the current fiscal.

About the bank's performance in the first quarter (April-June) of the current fiscal, he said: "Credit off-take has not been that high as we expected. But it was reasonably good. It would be in the region of 20 percent. Deposit is about double digit."

On the bank's plans for foreign branches, Sridhar said: "We are in the process of applying to RBI for certain branches. Hopefully that will happen in the current year."

He said the bank plans to open branches or subsidiaries in Hong Kong and Bahrain and would also look into countries in South and Southeast Asia and Africa.

Sridhar said the bank wants to strengthen its ATM network and would take it upto 1,100 by December from 650 now. By March 31, 2011 the bank would have 2,000 ATMs and by June 30, 2011 around 3,000 ATMS, he said.