Canara Bank to raise Rs 500-600 cr in Q2

The Canara Bank is looking to raise Rs 500-600 crore during the second quarter of the present fiscal to augment its capital adequacy ratio.

A C Mahajan, chairman and managing director, said, “The bank’s capital adequacy ratio (CAR) has declined to 12.44 per cent as on June 30, 2010, from 13.59 per cent during the period an year ago. It might further come down during the September quarter because the credits are growing. To ensure that the CAR remains above the 12 per cent mark, the bank will definitely go in for fund raising. We may go in for a Tier-II capital or a perpetual bond issue of around Rs 500 crore to Rs 600 crore during the second quarter of the current fiscal to augment our capital adequacy ratio.”

 

He said, the total business of the bank has shown a 23.4 per cent growth, to Rs 4,12,649 crore, during the June quarter over the period a year ago. Its net advances have recorded a growth of 23.5 per cent to Rs 1,73,794 crore compared to the corresponding quarter last year.

The share of CASA (current account, savings account) deposits stood at Rs 69,350 crore, showing a year-on-year growth of 28.8 per cent.

The return on assets improved to 1.55 per cent from 1.02 per cent in June quarter of last fiscal. The earnings per share jumped to Rs 24.72 from Rs 13.54 in June last year. The bank’s net non-performing assets ratio has declined to 1 per cent from 1.29 per cent in the year ago period.