Central Bank to raise Rs 400 cr through bonds in 2 months

State-run Central Bank of India plans to raise Rs 400 crore through a bond issue in two months, while it may get Rs 700 crore as fresh capital from the government.

The bank would raise funds through Tier-II bonds in the next two months, Chairman and Managing Director S Sridhar said today on the sidelines of a conference to launch a loan product here.

“We are expecting to receive Rs 700 crore from the government as Tier-I capital under the recapitalisation plan by March 31,” Sridhar added.

These funds will be used to meet capital adequacy and expansion requirements over the next few years.

Asked about interest rates, Sridhar said lending rates were likely to remain stable until March.

Meanwhile, the lender in association with Star Union Dai-ichi Life Insurance, launched a reverse-mortgage loan annuity product that would provide regular income to senior citizens throughout their lives against the house as an asset.

The scheme is open to senior citizens above the age of 60 and a spouse with a minimum age of 55 years, and an assured lifetime payment against a maximum of 20 years in the existing similar products.