Corporation Bank plans to raise Rs 1,000 crore | india | Hindustan Times
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Corporation Bank plans to raise Rs 1,000 crore

india Updated: Jun 30, 2009 16:46 IST

The state-run Corporation Bank is planning to raise Rs.1,000 crore this fiscal, a top official said here Tuesday.

"This year we have already raised Rs.1, 000 crore and we are planning to raise another Rs.1, 000 crore through tier I perpetual bonds or tier II capital," J.M. Garg, chairman and managing director of the bank, told reporters here on the sidelines of a banking conclave.

However, the chairman did not specify the time frame within which the bank would raise this amount. He said whenever the bank finds the rates conducive it would raise the amount.

Corporation Bank has seen a credit growth of 20 percent year-on-year and deposit growth of 25 percent during the first quarter of 2009-10.

Garg said the credit growth was "not on expected line" as it was higher (30 percent) during the same period last fiscal (2008-09), but the deposit growth "continues to be robust."

The bank has set a credit and deposit target of 20 percent and 22 percent respectively for 2009-10.

Agriculture, small and medium enterprises and retail sectors would be the key growth drivers, he said.

Garg added that net interest margin (NIM) has been coming down for the bank but it would stabilise in the second quarter of the current fiscal.

"We hope to maintain our NIM from the quarter three onwards," he said.

Asked about the NIM target for the current fiscal, he said: "Last year our NIM was 2.43 percent. We are expecting to maintain it around the same level. It would be in the range of 2.5 percent."

The bank is reducing deposit rates by 25-50 basis points from Wednesday. It has shortly reduced benchmark prime lending rates from April 1, 2009. The present BPLR is 12 percent.