Public sector lender Corporation Bank is planning to raise around Rs 1,000 crore in the current financial year and is also aiming for a credit and deposit growth of 22 to 25 per cent over this period.
“We had plans to raise Tier-II capital of around Rs 1,500-2,000 crore for the current financial year. Out of that, we have already raised Rs 1,000-crore during April in two tranches and we will be raising the rest over the year in different tranches,” Corporation Bank Executive Director Asit Pal said.
“In this financial year, we are targeting a credit and deposit growth of 22-25 per cent,” Pal added. The bank also sees a scope for reduction in its deposit rates by 0.25-0.50 per cent, he said adding, “We will meet by the month-end to take a view.”
The bank's current benchmark lending rate was at 12 per cent and the peak deposit rate was 7.25 per cent for 1 year maturity. The bank is also considering a reduction in its lending rates.
Corporation bank also expects to maintain its net interest margin at 2.3 to 2.5 per cent in the first quarter this financial year and was hopeful that it would increase in the second quarter, he said.
“Some of the high cost deposits raised last year were expected to mature in September this year, helping margins,” he said.