Central Bank to raise upto 1,000 cr in equity via QIP in Q4, FPO next year

FPO to strengthen lender's capital adequacy, size will depend on success of QIP

Public sector lender, Central Bank of India intends to raise up to Rs 1,000 crore in equity capital through Qualified Institutional Placement in the fourth quarter of the current financial year (Q4FY20). The Mumbai-based bank is also planning to float a follow on pubic offering next financial year (FY21) to strengthen capital adequacy.

Pallab Mahapatra, managing director and chief executive, Central Bank of India said bank has capital adequacy of over 12 per cent, above the regulatory requirement of 11.5 per cent.

The lender will approach the market to raise equity capital. "We have two options - raising equity by