Syndicate Bank may raise up to Rs 500cr via bonds

Syndicate Bank may raise up to Rs 500 crore through subordinated bonds this fiscal.

The bank was also planning to reduce the deposit rate by 50 basis points with effect from December, said George Joseph, chairman and managing director,  Syndicate Bank, on the sidelines of a seminar organised by the the Confederation of Indian Industry (CII), in Kolkata on Wednesday.

Recently, the bank had cut its BPLR by 75 basis points to 13.25 per cent. Earlier, the bank had planned to raise Rs 800 crore through follow-on offer and  qualified institutional placement (QIP). However, in view of volatile market conditions, the bank has temporarily shelved the plan.

Also, the bank had planned to issue medium term notes to raise funds, but it has deferred the plan at present.

The bank was also looking at 20 per cent growth in credit and advances during the current fiscal.

“The bank would raise Rs 300-500 crore, if required. At present, there is no liquidity problem and with a capital adequacy ratio of 11.55 per cent, the liquidity position of the bank is comfortable,” said Joseph.

At present, the net non performing asset (NPA) of the bank is 0.95 per cent, against 1.02 per cent same period last year. The gross NPA of the bank is 2.55 per cent, against 3.02 per cent during the same period last year.