Canara Bank Chairman and Managing Director M B N Rao said today the bank plans to raise $100 million (Rs 443 crore) hybrid Tier I capital from overseas by March. | |
| The bank raised $250 million (Rs 1,107 crore) of upper Tier II capital recently. The state-owned bank has postponed its plans of raising equity capital. |
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| "I am able to generate enough capital funds at attractive rates without diluting shareholders' equity," Rao told reporters on the sidelines of a banking technology seminar organised by the Confederation of Indian Industries. |
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| The bank has enough room to raise Tier II capital that will be sufficient for at least one year, Rao said. |
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| "But that doesn't prevent us from raising equity as that is a strategic decision," Rao said. |
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| Rao does not expect the government's borrowing programme to be high in the years to come as, "tax collection is robust and economy is doing good." |
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| The banks' statutory liquidity ratio is 29 per cent. |
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| The bank is looking at divesting a minority stake in its mutual fund arm to a global company, Rao said. |
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| It was reported earlier that the minority partner could be the Netherland-based Rabo Bank's asset management company, Robeco. |
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| Rao said the bank will retain majority stake in CanBank Mutual Fund. |
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| The final decision for induction of a strategic partner will be announced in next few weeks. |
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| Canara Bank is planning to float a life insurance joint venture by March. The state-owned bank is likely to retain the majority stake in the planned life insurance subsidiary. |
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| However, Rao declined to give any further details on the insurance venture. |
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