Central Bank to raise Rs 2,500 cr through rights issue

State-run Central Bank of India today said it will raise about Rs 2,500 crore through a rights issue in the current financial year.

"We are coming out with a rights issue tentatively to raise about Rs 2,500 crore. We will be doing it in the current financial year," Central Bank of India CMD S Sridhar told reporters here on the sidelines of a CII event.

"We have already appointed the merchant bankers (for the rights issue)," he added.
    
He said that out of the Rs 2,500 crore expected to be raised, Central Bank of India aims to garner 85 per cent of the total amount from the government.

"Our shareholding will not be changed. The government's share in our bank is now 80.2 per cent," he added.
    
"We are now assessing the market and we are taking all the necessary steps. We are to approach the SEBI, we will be filing our DRHP shortly," he added.
    
At present, the bank's tier I capital adequacy ratio is 6.5 per cent, but Sridhar said he is aiming at improving the ratio to 8 per cent by the end of the fiscal.
    
Replying to a question related to the bank's growth targets, Sridhar said, "We are keeping our growth target unchanged at 20 per cent. However, deposits are much lesser now... It's been a disappointment."