Canara Bank to get capital infusion of Rs 500 cr from govt

Public sector Canara Bank will receive capital infusion of Rs 500 crore from the government, a top bank official said today.

"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," bank's Chairman and Managing Director R K Dubey told reporters on the sidelines of an event.

Dubey said the bank 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, Dubey 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," he added.

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

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

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

Dubey said the bank has approached regulators of some countries for their permission to start operations there.

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