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| Corporation Bank seeks financial assistance from govt |
| Press Trust of India / New Delhi Oct 13, 2009, 21:11 IST |
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Corporation Bank today said it has sought financial assistance from the government to meet its credit growth need of about 25 per cent in the next three fiscal.
"We have requested them (government) these are are other capitals which they can provide us or they can permit us to raise through QIP (qualified institutional placement) or follow on issue, rights issue, preferential issue whichever way government wants," Corporation Bank Chairman J M Garg told reporters after launching pre-paid gift card.
The government assistance would be in addition to the capital that it can raise from its own resources and Tier I and Tier II bonds, Garg said.
"We have given our estimates for the next three fiscal... based on our projected credit growth of 25 per cent for the next three years assuming that the economy will pick up to 7.5 per cent. So in that event capital requirement would be between Rs 2,000 and 3,000 crore," he said.
The bank can generate about Rs 1,500 crore on its own, he said, adding, the remaining capital should either come from the government or through public offer.
At present, the government owns 57.8 per cent in the bank. In case of follow on public issue, the shares of the government would come down.
However, he said, the bank has enough capital to meet the business expansion for the current fiscal.
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