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SBI associate bank State Bank of Bikaner & Jaipur (SBBJ) is planning to raise capital of Rs 700 crore in the current fiscal which will include equity as well as bonds.
“Going ahead looking at the asset growth in case the need arise, we will come to the market. We may look forward to Rs 500 crore of equity (tier-I) and Rs 200 crore will be by tier-II bonds,” said Jyoti Ghosh, managing director of the bank.
SBBJ's current capital adequacy ratio as per Basel III norms stands at 11.57% which will rise to 11.8% if the capital raising is done. However, SBBJ may not go for perpetual bonds.
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Meanwhile, the bank's net profit after tax recorded a 17.65% growth on a y-o-y basis in the fourth quarter ended March 31, 2015 to Rs 280.25 crore. The net profit rose due to higher income from investments along with cut in provisioning towards bad loans. During the same period the total income of the bank rose by 7.36% to Rs 2,634.66 crore.
For the fiscal ending March 31, 2015 the bank's net profit grew by 6.17% to Rs 776.87 crore y-o-y. At the same time total income grew by 9. 81% to Rs 9,931.84 crore.
“The growth in advances during this fiscal is going to be better than last fiscal. Growth should preferable start after the first quarter. In deposits we are looking at Current Account Savings Account (CASA) mostly and in that we can factor in the cost of funds better. We are targeting 12% growth in advances and 16% for deposits,” said Ghosh.
