Central Bank likely to go for FPO

Speaking to reporters at the FICCI Banking Conclave here today, Daruwala said the bank might float a follow-on public offer for which it would have to approach the government.     

The bank entered the capital market in October 2007. As per the guidelines, it has to wait for one year before coming out with follow-on public offer.     

 

Its capital adequacy ratio stood at 10.42 per cent in the last fiscal, she said. "We target to raise the ratio to 11 per cent at the end of March, 2009", she added.     

Besides follow on offer, the bank would also examine other cost-effective options to raise funds.     
During 2008-09, the Bank would be looking at a credit growth of 20 per cent and a deposit growth of 23 per cent.     

Daruwala said the bank was unlikely to change the PLR which is at 13 per cent. Government holding in the bank stands at 80 per cent.