Canara Bank to raise Rs 3,500 cr in equity

The bank had raised Rs 1,124 crore in March through a rights issues of equity shares

Government-owned Canara Bank plans to raise up to Rs 6,300 crore, including equity up to Rs 3,500 crore, for business and regulatory requirements.
 
Its board of directors has approved. The equity capital could be raised via qualified institutional placement or a rights offer, the Bengaluru-based bank informed the BSE. Permission for this will be taken from shareholders at the next annual general meeting.
 
In March, it had raised Rs 1,124 crore through a rights issues of equity shares, at Rs 207 each (the stock closed on Thursday at Rs 352).
 

The Government of India’s stake in the bank was 66.3 per cent at the end of March. Life Insurance Corporation, also owned by the central government, held 13.62 per cent.

 
The board of directors also okayed the raising of debt capital through additional tier-I bonds up to Rs 1,800 crore and tier-II bonds up to Rs 1,000 crore.
 
The capital adequacy ratio had improved to 12.86 per cent at end-March, from 11.08 per cent a year before.
 
For 2016-17, the bank posted a profit of Rs 1,122 crore, against a loss of Rs 2,813 crore in FY16.