canara bank: Canara Bank board approves Rs 9000-crore capital raising plan

State-owned ‘s board on Friday approved a Rs 9,000 crore capital raising plan through a combination of additional tier-1 and tier-2 bonds while the lender has no equity expansion plan this fiscal.

The bank would look to raise Rs 5500 crore through Basel III compliant additional tier 1 bonds, while the target to raise through tier 2 bonds is fixed at Rs 3500 crore.

ET on May 6 had highlighted that the bank would seek board approval for Rs 9000-crore capital raising.

The timing and extent of fundraising would however entirely depend on the market conditions, the bank said in a regulatory filing to stock exchanges.

“Our existing capital is good enough to support a 10% credit growth this fiscal,” Canara’s managing director LV Prabhakar had said last month.

The lender has set its overall loan growth target at 8% while it envisaged a 10% retail loan expansion. Its loan book in the last fiscal grew 9.77% to Rs 7.41 lakh crore.

The bank’s capital adequacy ratio stood at 14.9% at the end of March.