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City Union Bank to require Rs 3,000 cr by 2014

BS Reporter  |  Chennai 

City Union Bank (CUB) has said it would require Rs 3,000 crore by 2014, to support its target of achieving a three-fold increase in its business.

"The bank's current capital is Rs 1,000 crore and Rs 1,000 crore from the profit will be pumped back. The remaining Rs 1,000 crore will be raised though rights issue or QIP," said N Kamakodi, managing director and chief executive officer, CUB.

It is planning to seek its shareholders' approval to raise Rs 300 crore through QIP at the upcoming AGM, scheduled in August.

The bank has been growing at five-six per cent over the years, and this year, it expected to grow at around 25 per cent, he added. Its total business has crossed Rs 12,000 crore.

Kumbakonam-based CUB, one of the oldest private sector bank in the country, reported a 32 per cent increase in its net profit to Rs 58.51 crore for the quarter ended June 2011, as compared with Rs 44.37 crore in the corresponding quarter last year.

The bank's total income has increased 39.30 per cent to Rs 417.02 crore for the quarter, from Rs 299.34 crore compared with the same quarter last year. It is planning to add 41 branches to its existing 259 branches by March 2012.

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First Published: Mon, August 01 2011. 00:58 IST