Allahabad bank is planning to raise money by the fiscal end to fund its growth plans. The bank, which has just crossed Rs 2 lakh crore business, has targeted a business of Rs 2.20 lakh crore by end of the fiscal.
?Our CAR is more than 13% at present but we will need more capital as the business grows,? the bank?s chairman and managing director JP Dua said.
The bank already has headroom of about Rs 2,600 crore and may look at options including tier- II bonds and innovative perpetual bonds. It already has approval of shareholders for raising Rs 1,400 crore. ?Whether we raise it in one shot depends on the pricing,? Dua said. Meanwhile, it has asked for Rs 1,000 crore from the government and is hopeful of getting that by end of the fiscal.
Allahabad Bank has set an internal target of doubling its business in next three years. ?The thrust will be on CASA which is around 34% at present. We will also grow on retail term deposits,? Dua said.
Allahabad Bank has been able to grow its business by an average of 26% during the last nine months. While deposit has grown by 25% and credit grew by 28% during the period. ?We have decided to open one and a half million savings and current bank accounts. We have already opened 10.5 lakh savings and current accounts,? Dua said.
?We will achieve the target of 1.5 million savings and current account in next three months. That will give us a big boost as far as our resources are concerned,? he added.