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Canara Bank to raise $300 mn in Nov

The public sector bank says it will raise the money through a combination of medium term notes and perpetual bonds.

india Updated: Sep 26, 2006 14:50 IST

Public sector Canara Bank on Tuesday said it plans to raise $300 million through combination of medium term notes (MTN) and perpetual bonds in November.

"The MTN programme is on. Legal due diligence is underway and the rating exercise will be complete by next month," Canara Bank Chairman and Managing Director M B N Rao told reporters in Mumbai on the sidelines of the FICCI-IBA Conference on Global Banking.

The rating for the issue is being carried by Fitch and Moody's, Rao said.

In the current fiscal, the bank raised a total of Rs 1,075 crore domestically out of which Rs 575 crore qualify for the lower tier II capital while Rs 500 crore is upper tier II capital. The MTN would also qualify for tier II capital.

On interest rate prospects, Rao maintained that the major indicator, inflation, has been under control, pointing to a stable interest rate scenario in the short to medium term.

"Inflationary expectations are the major factors and they have been under control in the second quarter. So the interest rates are likely to be stable for sometime," he said.

First Published: Sep 26, 2006 14:50 IST