Tamil Nadu-based City Union Bank is looking at 30% growth in credit and deposit this fiscal as it sets a business target of Rs 23,000 crore in 2010-11.
The 106 years old bank, which has just started making its pan-Indian presence, has registered 26% growth in deposit and 22% growth in advances in 2009-10.
?To match a growth in business by almost Rs 6,000 crore in a year we need to grow our deposit and advances by 30%,? said S Balasubramanian , CEO and managing director of the bank.
According to him, a rapid network expansion across the country will open up new opportunities for the bank. ?Earlier, we were focused on south India , but last year we have opened 42 branches across the country. This year also we will open around 60 branches,? he said.
The bank has received license from the Reserve Bank of India for opening 40 branches in the urban centres and 20-22 branches in the rural centres.
Present at an interactive session organised by the Indian Chamber of Commerce, Balasubramanian said, ?once we grow our business beyond Rs 25,000 crore we will need capital. Our aim is to have a business of Rs 50,000 crore by 2015.? The bank?s capital adequacy ratio at present is at 13.92%.
It will require to raise around Rs 1,000 crore by the time it achieves a business of Rs 50,000 crore. ?Even after procuring through internal accruals we will have a gap of around Rs 300 crore. We may go for a rights issue then. Alternatively we also have the general body approval for QIPs. It could be a combination of these two,? he said.