Fin Min approves capital restructuring of central Bank

Kolkata, Mar 30 | Updated: Mar 31 2007, 06:08am hrs
Union ministry of finance has finally approved the capital restructuring plan of Mumbai-based Central Bank of India. The move will help the bank to tap the capital market for raising resources.

According to Pawan Kumar Bansal, Union minister of state for finance, We have recently cleared the capital restructuring plans of Central Bank of India. The same for the Chennai-based Indian Bank was also cleared earlier this year. The bank, which has a capital base of Rs 1,000 crore is currently preparing to apply to the market regulator for its approval for the initial public offer. However,two Kolkata-based banks, Uco Bank and United Bank of India are yet to receive the green signal for their proposals for capital restructuring.

In an interview to FE in September 2005, Central Banks chairperson and managing director HA Daruwalla had said that hitting the capital market was one of the main priority of the bank. However, she expected to enter the market in 2005-06. The banks management, however, was not available for their comment on Friday.

While addressing a meeting of Bharat Chamber of Commerce, Bansal said the finance ministry is hopeful of achieving the target set for agri lending for the current finanial year.