Canara Bank expects loan growth of 20% in FY14

State-owned Canara Bank expects a credit growth of 20% in the current fiscal on the back of increased economic activity in the country.

 

"We are hoping a credit growth of 18-20% and also deposit growth in the same range," Canara Bank Chairman and Managing Director R K Dubey told PTI.

 

The total advances of the Bangalore-based bank stood at Rs 2,43,936 crore at the end of March 2013 as compared to Rs 2,33,607 crore at the end of financial year 2011-12, an increase of 4%.

 

He also said the bank will begin the process of raising up to $1 billion (about Rs 5,487 crore) through bonds next week from the overseas market to fund global business expansion.

 

"We are targeting to raise $1 billion from bonds. We are going for roadshows to Singapore, Hong Kong and London between May 27 and May 31. The issue will be out on those days," he said.

 

The funds raised would be utilised for growth of overseas business of the bank, he said.

 

The bank has five overseas branches at London, Leicester, Shanghai, Manama and Hong Kong.

 

As part of its global expansion plans, the bank intends to open branches at 9 nine overseas destinations.

 

Dubey said the bank has already got licence for opening a branch at Johannesburg in South Africa.

 

Besides Johannesburg, he said the bank has plans to open offices in Sao Paulo (Brazil), Dar-es-Salaam (Tanzania), Tokyo (Japan), Abuja (Nigeria), Jeddah (Saudi Arabia), Qatar Financial Centre (Qatar), Frankfurt (Germany) and New York (the USA) by March 2015.